Question
5-41(b). The following table provides the Dow Jones Industrial Average (DJIA) opening index value on the first working day of 19942013. Develop a trend line
5-41(b). The following table provides the Dow Jones Industrial Average (DJIA) opening index value on the first working day of 19942013. Develop a trend line and use it to predict the opening DJIA index value for years
- 2014,
- 2015, and
-
2016.
YEAR | DJIA |
1994 | 3,754 |
1995 | 3,834 |
1996 | 5,117 |
1997 | 6,448 |
1998 | 7,908 |
1999 | 9,213 |
2000 | 11,502 |
2001 | 10,791 |
2002 | 10,022 |
2003 | 8,342 |
2004 | 10,453 |
2005 | 10,784 |
2006 | 10,718 |
2007 | 12,460 |
2008 | 13,262 |
2009 | 8,772 |
2010 | 10,431 |
2011 | 11,577 |
2012 | 12,392 |
2013 | 13,104 |
(b): Using the data from this problem (years 1994-2013), calculate 3 month average forecast and then calculate the MSE for this model. The MSE is:
Question 6 options:
| 1,532,843 |
| 1,601,226 |
| 1,497,394 |
| 1,568,511 |
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