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5. Consider the following time series data. Week 1 2 3 456 Value 18 13 16 11 17 14 a. Construct a time series
5. Consider the following time series data. Week 1 2 3 456 Value 18 13 16 11 17 14 a. Construct a time series plot. What type of pattern exists in the data? b. Develop the three-week moving average forecasts for this time series. Compute MSE and a forecast for week 7. C. Use a = .2 to compute the exponential smoothing forecasts for the time series. Com- pute MSE and a forecast for week 7. d. Compare the three-week moving average approach with the exponential smoothing approach using a = .2. Which appears to provide more accurate forecasts based on MSE? Explain. e. Use a smoothing constant of a = .4 to compute the exponential smoothing forecasts. Does a smoothing constant of .2 or .4 appear to provide more accurate forecasts based on MSE? Explain.
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