Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Apply smoothing techniques to forecast Company XYZ revenues. (a) Forecast the revenues (Smillions) for the lSt quarter of 2022. i. Use a fourperiod moving average
Apply smoothing techniques to forecast Company XYZ revenues. (a) Forecast the revenues (Smillions) for the lSt quarter of 2022. i. Use a fourperiod moving average to smooth the time series. ii. Use a threrperiod weighted moving average to smooth the time series. [Use a weight of 0.6 for the most recent period, 0.3 for the next period back, and 0.1 for the third period back] iii. Use exponential smoothing with a smoothing constant of CL = 0.1 to smooth the time series. (b) In order to evaluate forecast accuracy= calculate the mean absolute error (NIAE)= mean squared error (MS: 3) and mean absolute percentage error (NIAPE) for all three of the above smoothing techniques. Which of the three smoothing methods do you prefer? Why? (c) Analyzing the time series chart previously constructed, do smoothing techniques appear to be the most appropriate method of forecasting for this data? Explain. Fiscal Year 2018 Fiscal Year 2019 Fiscal Year 2020 Fiscal Year 202iI Fiscal Year Quarter Revenues Qtr 1 $12,049 Q r 2 $15,?10 Q r 3 $16,240 Q r 4 $19,526 Q r 1 $12,562 Q r 2 $16,090 Q r 3 $16,485 Q r 4 $19,524 Q r 1 $12,884 Q r 2 $16,449 Q r 3 $1?,188 Q r 4 $20,640 Cl r 1 $13,881 Q r 2 $15,945 Q r 3 $18,091 Q r 4 $22,455
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started