Dell uses the CRS chip in some of its laptop computers. The prices for the chip during
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(a) Use a 2-month moving average on all the data and plot the averages and the prices.
(b) Use a 3-month moving average and add the 3-month plot to the graph created in part (a).
(c) Which is better (using the mean absolute deviation): the 2-month average or the 3-month average?
(d) Compute the forecasts for each month using exponential smoothing with and initial forecast for January of $1.80. Use α = .1, then α = .3, and finally α = .5. Using MAD, which α is thebest?
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a b The computations for both the two and threemonth averages appear in the table the results appear ...View the full answer
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