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B C D E G M N O Q R S Google Weekly Return Name: W N Ch8-A (a) (b) Expo. Smoothing Data Table Expo.

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B C D E G M N O Q R S Google Weekly Return Name: W N Ch8-A (a) (b) Expo. Smoothing Data Table Expo. For data of weekly returns (in %) of Google stock (GOOGL) given here, 3-week Squared Smoothing Squared Alpha Forecast MSE forecast the return for the week of June 17, 2020 as follows. Week of Return Mov. Ave. Error 0.3 Error 2/3/2020 3.18% 0.1 LO CO [Note: Express your forecasts in % rounded to to 2 decimal places (e.g., 2/10/2020 2.64% 0.2 3.23%), and 2/17/2020 2.35% 0.3 express the MSE's rounded to 5 decimal places (e.g., 0.00073).] 2/24/2020 -10.23% 0.4 3/2/2020 -3.30%% 0.5 (a) Forecast using a 3-week moving average and find the MSE form this. W N 3/9/2020 6.49% 0.6 (b) Forecast using exponential smoothing with alpha value = 0.3. Findthe MSE 3/16/2020 -12.82% 0.7 from this. 3/23/2020 3.86% 0.8 (c) Now using the Data Table, perform exponential smoothing with alpha value 3/30/2020 1.59% 0.9 = 0.1, 0.2, 0.3, 0.4, 0.5, 0.6, 0.7, 0.8, 0.9. Choose the alpha with the smallest MSE. What is the best forecast here and the corresponding alpha? 4/6/2020 9.91% (d) Which method is better between (a) 3-week mov. ave. and (c) expo 18 4/13/2020 5.83% smoothing with the best alpha? Show MSE's to support your answer. 4/20/2020 -0.19% 4/27/2020 3.14% 5/4/2020 1.96% 6/11/2020 -0.82% 5/18/2020 2.88% 5/25/2020 1.429 6/1/2020 0.45% 6/8/2020 0.83% 6/10/2020 0.87% 28 6/17/2020 ? 29 30 MSE 31 32 33 Answer: Forecast MSE 36 Mov. Ave 37 b) Expo. Sm. 38 Expo. Sm. w best alpha 39 40 d) 42

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