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How have stocks performed in the past? The following table shows performance of a broad measure of stock performance (by percentage) for each decade from
How 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. O A. O C. OD. 7 2 O Performance 127 Performance [ Performance I 18 20603 b. Fit a three-period moving average to the data and plot the results. Choose the correct graph below. OA OB O c O D. 20 20 Q 20 i 1 10-18 Q 10- Melt Q Performance (20 Performance Performance Decals 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. OD 20- 20 10 Ming 10- Performance IN1 18:09 2060 #2060 6 Decada Decade d. What is the exponentially smoothed forecast for the 2010s? % (Type an integer or decimal rounded to the nearest tenth as needed.) e. Repeat (c) and (d) using W =0.25. Exponentially smooth the series and plot the results. Choose the correct graph below. OA OB O C. OD. 20- Q Performance #2060- What is the exponentially smoothed forecast for the 201097 (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 hates the effects of outliers and irregular variations, while a larger value of W is preferable for short-term predictions. B. The forecast value when W=0.50 is less than the forecast value when W= 0.25 because the value of W is inversely proportional with the forecast value. O C. The forecast value when W=0.50 is great Blue when W = 0.25 boos we 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 set has no outliers. A smaller value of W is preferable when attempting to eliminate the effects of outliers and inregular 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 smoo I series with W =0.25, there appears to be a general downward trend of stock performance in the past. O B. with W =0.50, there appears to be a general upward trend of stock performance in the past. O C. Base performance in the past. OD. B W = 0.50, the nd of stock performance in the past
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