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fHow have stocks performed in the past? The following table shows performance of a broad measure of stock performance (by percentage) for each decade from
\fHow have stocks performed in the past? The following table shows performance of a broad measure of stock performance (by percentage) for each decade from the 1830s through the 2000s. Complete parts a through g below. " Click the icon to view the stock performance table. a. Plot the time series. Choose the correct graph below. OA OB. O C. O D. 204 O 10 1 Q O Performance [31 Performance ! Performance I Performance I 18676 # 20003 20608 3808 H 2080 Orcade Decade b. Fit a three-period moving average to the data and plot the results. Choose the correct graph below. OA. O B. O c. O D. 2 20 20 For Performance (%! Performance (" Performance 1% Performan Deceds Decada c. Using a smoothing coefficient of W =0.50, exponentially smooth the series and plot the results. Choose the correct graph below. OA OB O C. O D. 20 Q Performance Phil Performance P 10 Pipes 20808 #20008 Decada d. What is the exponentially smoothed forecast for the 2010s? % (Type an integer or decimal rounded to the nearest tenth as needed.) e. Repeat (o) and (d) using W = 0.25. Exponentially smooth the series and plot the mesuits. Choose the correct graph below. OA O B. O C. O D. 2 20 20- 2 20 10 Q 10 10- Performance I Pafor Decade What is the exponentially smoothed forecast for the 2010s? (Type an integer or decimal rounded to the nearest tenth as needed ) f. Compare the results of (d) and (o). Choose the correct answer below. O) A. The forecast value when W = 0.50 is less than the forecast value when W= 0.25 because a smaller value of W eliminates the effects of outliers and irregular variations, while a larger value of W is preferable for short-term predictions. O B. The forecast value when W = 0.50 is less than the forecast value when W= 0.25 bed proportional with the forecast value. O C. The forecast value when W=0.50 is greater than the forecast value when W = 0.25 becau a larger value of W eliminates the effects of outliers and irregular variations, while a smaller value of W is preferable for short-term predictions. O D. The two forecast values are the same. because the given data sat has no outliers. A smaller value of W is preferable when attempting to eliminate the effects of outliers and irregular variations, while a larger value is preferable for short-term predictions, g. What condusions can you reach concerning how stocks have performed in the past? O A. Based on the exponentially smoothed series with W=0.25, there appears to be a general downward trend of stock performance in the past. O B. Based on the ward trend of stock pert ce in the past. O C. Based on the exponentially smoothed series with W =0.25, there appears to be a general upward trend of stock performance in the past D. Based on the exponentially smoothed series with W = 0.50, there appears to be a general downward trend of stock performance in the past
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