Question
The Excel file Closing Stock Prices.xlsx provides data for four stocks and the Dow Jones Industrials Index over a 1-month period. a. Develop spreadsheet models
The Excel file Closing Stock Prices.xlsx provides data for four stocks and the Dow Jones Industrials Index over a 1-month period.
a. Develop spreadsheet models for forecasting each of the stock prices using simple 2-period moving average and simple exponential smoothing with a smoothing constant of 0.3.
b. Compare your results to the outputs from Excels Data Analysis tools.
c. Using MAD, MSE, and MAPE as guidance, find the best number of moving average periods and best smoothing constant for exponential smoothing.
| Closing Stock Prices | |||||
| Date | IBM | INTC | CSCO | GE | DJ Industrials Index |
| 09/03/2010 | $127.58 | $18.43 | $21.04 | $15.39 | 10447.93 |
| 09/07/2010 | $125.95 | $18.12 | $20.58 | $15.44 | 10340.69 |
| 09/08/2010 | $126.08 | $17.90 | $20.64 | $15.70 | 10387.01 |
| 09/09/2010 | $126.36 | $18.00 | $20.61 | $15.91 | 10415.24 |
| 09/10/2010 | $127.99 | $17.97 | $20.62 | $15.98 | 10462.77 |
| 09/13/2010 | $129.61 | $18.56 | $21.26 | $16.25 | 10544.13 |
| 09/14/2010 | $128.85 | $18.74 | $21.45 | $16.16 | 10526.49 |
| 09/15/2010 | $129.43 | $18.72 | $21.59 | $16.34 | 10572.73 |
| 09/16/2010 | $129.67 | $18.97 | $21.93 | $16.23 | 10594.83 |
| 09/17/2010 | $130.19 | $18.81 | $21.86 | $16.29 | 10607.85 |
| 09/20/2010 | $131.79 | $18.93 | $21.75 | $16.55 | 10753.62 |
| 09/21/2010 | $131.98 | $19.14 | $21.64 | $16.52 | 10761.03 |
| 09/22/2010 | $132.57 | $19.01 | $21.67 | $16.50 | 10739.31 |
| 09/23/2010 | $131.67 | $18.98 | $21.53 | $16.14 | 10662.42 |
| 09/24/2010 | $134.11 | $19.42 | $22.09 | $16.66 | 10860.26 |
| 09/27/2010 | $134.65 | $19.24 | $22.11 | $16.43 | 10812.04 |
| 09/28/2010 | $134.89 | $19.51 | $21.86 | $16.44 | 10858.14 |
| 09/29/2010 | $135.48 | $19.24 | $21.87 | $16.36 | 10835.28 |
| 09/30/2010 | $134.14 | $19.20 | $21.90 | $16.25 | 10788.05 |
| 10/01/2010 | $135.64 | $19.32 | $21.91 | $16.36 | 10829.68 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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
Financial And Managerial Accounting For MBAs
Authors: Peter D. Easton
6th Edition
9781618533593
