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Due to the predictive nature of the DJIA, you develop a simple exponential smoothing forecast to compare with the actual closing value of the index
Due to the predictive nature of the DJIA, you develop a simple exponential smoothing forecast to compare with the actual closing value of the index over the 20-day period. Figure 4 below shows this comparison, visually. Data Point 15 on the chart shows the forecast and actual close of the DJIA on 9/24/2010. Estimate the residual for this day (9/24/2010) based on a smoothing constant of .03
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