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9. The Excel file Closing Stock Prices provides data for fours stocks and the Dow Jones Industrials Index over a one-month period. Develop a spreadsheet

9. The Excel file Closing Stock Prices provides data for fours stocks and the Dow Jones Industrials Index over a one-month period. Develop a spreadsheet model for forecasting the stock price of IBM using a 2-period moving average, and determine the MSE (mean square error). What is the MSE?

10.The Excel file Closing Stock Prices provides data for fours stocks and the Dow Jones Industrials Index over a one-month period. Develop a spreadsheet model for forecasting the stock price of IBM using simple exponential smoothing with a smoothing constant of 0.3, and determine MSE (mean square error). What is the MSE?

11.Based on results from #s 9 and 10 above, which forecasting method do you suggest (i.e., 2-period moving average or simple exponential smoothing with a smoothing constant of 0.3)?

12.Consider the prices for the Dow Jones Industrials in the Excel file Closing Stock Prices. The data appear to have a linear trend over the time period provided. Use simple linear regression to forecast the data. What would be the forecast for the next 3 days?

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