Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Centerville Bikes and Stuff (CBS) sells motorcycles and accessories. The number of helmets sold by CBS per week for the past six weeks follows.
Centerville Bikes and Stuff (CBS) sells motorcycles and accessories. The number of helmets sold by CBS per week for the past six weeks follows. Week 1 2 3 4 5 6 Value 18 11 14 10 17 12 (a) Construct a time series plot. 20 18 10 8 6 4 2 0 + 16 14 12 W + 20 18 16 14 12 10 8 2 W 0 0 1 2 3 4 5 6 7 0 1 2 3 4 5 6 7 0 1 2 3 4 5 Week Week Week 20 18 16 14 12 10 H 20 18 16 14 12 Time Series Value 2086420 0 1 2 3 4 5 6 7 Week What type of pattern exists in the data? The data appear to follow a trend pattern. The data appear to follow a horizontal pattern. The data appear to follow a seasonal pattern. The data appear to follow a cyclical pattern. 9 7 (b) Develop the three-week moving average for this time series. (Round your answers to two decimal places.) Week Time Series Forecast (c) Value 1 18 2 11 3 14 4 10 5 17 6 12 Compute MSE. (Round your answer to two decimal places.) MSE = What is the forecast for week 7? Use = 0.2 to compute the exponential smoothing values for the time series. Time Series Week Value 1 18 2 11 3 14 4 10 5 17 6 12 Forecast Compute MSE. (Round your answer to two decimal places.) MSE = What is the forecast for week 7? (Round your answer to two decimal places.) (d) Compare the three-week moving average forecast with the exponential smoothing forecast using = 0.2. Which appears to provide the better forecast based on MSE? Explain. The exponential smoothing using = 0.2 provides a better forecast since it has a larger MSE than the three-week moving average approach. 0000 The exponential smoothing using a = 0.2 provides a better forecast since it has a smaller MSE than the three-week moving average approach. The three-week moving average provides a better forecast since it has a smaller MSE than the smoothing approach. The three-week moving average provides a better forecast since it has a larger MSE than the smoothing approach. (e) Use = 0.4 to compute the exponential smoothing values for the time series. Time Series Week Value 1 18 2 11 3 14 4 10 5 17 6 12 Forecast Does a smoothing constant of 0.2 or 0.4 appear to provide more accurate forecasts based on MSE? Explain. 000 The exponential smoothing using = 0.2 provides a better forecast since it has a larger MSE than the exponential smoothing using = 0.4. The exponential smoothing using a = 0.4 provides a better forecast since it has a smaller MSE than the exponential smoothing using = 0.2. The exponential smoothing using = 0.4 provides a better forecast since it has a larger MSE than the exponential smoothing using = 0.2. The exponential smoothing using = 0.2 provides a better forecast since it has a smaller MSE than the exponential smoothing using a = 0.4.
Step by Step Solution
★★★★★
3.45 Rating (158 Votes )
There are 3 Steps involved in it
Step: 1
a Here is the time series plot showing the weekly sales of helmets by Centerville Bikes and Stuff over a sixweek period The plot illustrates the fluct...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