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5. Exerclse 5.5 A firm experienced the demand shown in the following table. FW in the table by preparing forecasts based on a five-year moving
5. Exerclse 5.5 A firm experienced the demand shown in the following table. FW in the table by preparing forecasts based on a five-year moving average, a three-year moving average, and exponential smoothing (w =0.9 and w=0.3 ). (Note: The exponentlal smoothing forecasts may be begun by assuming Yf+1=Yi ) The following table shows the square errors, (YfYl)2, for forecasts from 2005 through 2009. FWI the table by caiculating the root mean square error (RMSE) for each of the methods. Based on the RMSE criterion, which of the forecasting methods is the most accurate? Exponential smoothing (w=0.3) Exponential smoothing (w=0.9) Three-year moving average Flve-year moving average 5. Exerclse 5.5 A firm experienced the demand shown in the following table. FW in the table by preparing forecasts based on a five-year moving average, a three-year moving average, and exponential smoothing (w =0.9 and w=0.3 ). (Note: The exponentlal smoothing forecasts may be begun by assuming Yf+1=Yi ) The following table shows the square errors, (YfYl)2, for forecasts from 2005 through 2009. FWI the table by caiculating the root mean square error (RMSE) for each of the methods. Based on the RMSE criterion, which of the forecasting methods is the most accurate? Exponential smoothing (w=0.3) Exponential smoothing (w=0.9) Three-year moving average Flve-year moving average
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