The closing value of the Dow Jones Industrial Index for each trading day for a 1-year period

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The closing value of the Dow Jones Industrial Index for each trading day for a 1-year period is provided in the file P16_24.xlsx.

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

How well does the moving average method with span 2 forecast the known observations in this data set?

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

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

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Practical Management Science, Revised

ISBN: 9781118373439

3rd Edition

Authors: Wayne L Winston, S. Christian Albright

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