Question
Consider the following time series data. Week 1 2 3 4 5 6 Value 19 14 17 12 17 14 Develop a three-week moving average
Consider the following time series data.
Week | 1 | 2 | 3 | 4 | 5 | 6 |
Value | 19 | 14 | 17 | 12 | 17 | 14 |
Develop a three-week moving average for this time series. Compute MSE and a forecast for week 7. Round your answers to two decimal places.
Week | Time Series Value | Forecast |
---|---|---|
1 | 19 | |
2 | 14 | |
3 | 17 | |
4 | 12 | |
5 | 17 | |
6 | 14 |
MSE: The forecast for week 7:
Use = 0.2 to compute the exponential smoothing values for the time series. Compute MSE and a forecast for week 7. Round your answers to two decimal places.
Week | Time Series Value | Forecast |
---|---|---|
1 | 19 | |
2 | 14 | |
3 | 17 | |
4 | 12 | |
5 | 17 | |
6 | 14 |
MSE: The forecast for week 7:
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.
- Use trial and error to find a value of the exponential smoothing coefficient that results in a smaller MSE than what you calculated for = 0.2. Find a value of for the smallest MSE. Round your answer to three decimal places. alpha=
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