Dow jones industrial average opening index

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Reference no: EM13762701

The following table provides the Dow Jones Industrial Average (DJIA) opening index

value on the first working day of 1994 through 2013.

YEAR DJIA

2013 13,104

2012 12,392

2011 11,577

2010 10,431

2009 8,772

2008 13,262

2007 12,460

2006 10,718

2005 10,784

2004 10,453

2003 8,342

2002 10,022

2001 10,791

2000 11,502

1999 9,213

1998 7,908

1997 6,448

1996 5,117

1995 3,834

1994 3,754

Use Excel 2013, Excel QM or QM Windows to analyze the data, print out the summary output and attach it to your submission.

a) Develop a trend line and use it to predict the opening DJIA index value for years

2014, 2015 and 2016. Find the MSE for this model

b) Use exponential smoothing with trend adjustment to forecast the opening DJIA for 2014. Use ? = 0.8 and ? = 0.2.

c) Compare the MSE for this technique with the MSE for the Trends line and comment on the difference.

Reference no: EM13762701

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