The closing value of the Dow Jones Industrial Average for each trading day during a one-year period

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The closing value of the Dow Jones Industrial Average for each trading day during a one-year period is provided in the file P14_23.xlsx.

a. Using a span of 2, forecast the price of this index on the next trading day with the moving averages method.

How well does the moving averages method with span 2 forecast the known observations in this series?

b. Repeat part a with a span of 5; with a span of 15.

c. Which of these three spans appears to be most appropriate? Justify your choice.

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Practical Management Science

ISBN: 9781111531317

4th Edition

Authors: Wayne L. Winston, S. Christian Albright

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