1.Consider the applications for home mortgages data in the file of P12_04.xlsx.

a.Show a time series chart of the data.

b.Use simple exponential smoothing to forecast these data, using the default smoothing constant of 0.1

c.Calculate the three types of forecast errors, RMSE, MAE, and MAPE

d.Use the solver function in excel to optimize the smoothing constant in order to generate a minimum MAPE value.

e.Use multiple regression to develop an equation that can be used to predict future applications for home mortgages (hint: use dummy variables for the quarters and show the time variable for the quarter numbers)

AutoSave OFF P12_04 - Saved to my Mac Home Insert Draw Page Layout Formulas Data Review View LE Share Comment V Calibri 11 A ab Wrap Text v General Paste IUV Merge & Center v $ ~ % 9 00 Conditional Format Cell Insert Delete Format Ideas Formatting as Table Styles X Sort & Find & Filter Select K3 X fx S T U V W X Y B C D E G H K L M N O P Q R Quarter Year Applications This is fictitious data. 1 1 96 A W N H A W N H A W N HAWN HAWN HAWN 114 O O OI UI UI UI UI A A A A W W W W N N N N HK 112 81 97 103 120 99 105 110 117 96 74 94 100 96 95 122 1 13 100 102 96 116 98