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The following table shows passenger throughputs at Zhuhai Jinwan Airport from 2014 to 2023 (corresponding to t = 1-10). Year Time (t) Passengers (thousands)
The following table shows passenger throughputs at Zhuhai Jinwan Airport from 2014 to 2023 (corresponding to t = 1-10). Year Time (t) Passengers (thousands) (Y+) 2014 1 4077 2015 2 4710 2016 3 6100 2017 4 9210 2018 5 11221 2019 6 12283 2020 7 7336 2021 8 8020 2022 9 4006 2023 10 11457 a. Use moving average with K-3 to generate one-step-ahead forecasts for 2021to the end of series. b. Use linear exponential smoothing (LES) with Alpha (a) = 0.8 and Beta () = 0.1 to forecast the time series from 2021 to the end of series, and with the starting values for the trend and level given by T3 = (Y3 - Y1)/2 and L3 = (Y1 + Y2 + Y3)/3 + T3 respectively. c. Calculate the RMSE for a and b. Please discuss on the difference between moving average and exponential smoothing. d. Without performing any calculations, please discuss how would using the data from 2017, 2018, and 2019 as initial values impact the forecast outcome, and provide a discussion based on real-world circumstances.
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