A brokerage company is interested in forecasting the number of new accounts the office will obtain next

Question:

A brokerage company is interested in forecasting the number of new accounts the office will obtain next month. It has collected the following data for the past 12 months:
Month Accounts
1………………………….19
2………………………….20
3………………………….21
4………………………….25
5………………………….26
6………………………….24
7………………………….24
8………………………….21
9………………………….27
10…………………………30
11………………………...24
12………………………...30
a. Produce a time-series plot for these data. Specify the exponential forecasting model that should be used to obtain next month’s forecast.
b. Assuming a double exponential smoothing model, fit the least squares trend to the historical data, to determine the smoothed constant-process value and the smoothed trend value for period 0.
c. Produce the forecasts for periods 1 through 12 using α = 0.15, b = 0.25. Indicate the number of new accounts the company may expect to receive next month based on the forecast model.
d. Calculate the MAD for this model.
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Business Statistics A Decision Making Approach

ISBN: 9780133021844

9th Edition

Authors: David F. Groebner, Patrick W. Shannon, Phillip C. Fry

Question Posted: