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The U.S. monthly inflation rate for 2020 is shown below: a. Compute the inflation rate for January 2021 using the exponential smoothing forecast using a=0.3
The U.S. monthly inflation rate for 2020 is shown below: a. Compute the inflation rate for January 2021 using the exponential smoothing forecast using a=0.3 and then using 0.9. Assume that the forecast for Januar 2020 is 2.5. Do not round intermediate calculations. Round your answers to three decimal places. Forecast(January2021,a=0.3):Forecast(January2021,a=0.9):%% b. What is the MAD for the forecasts generated using exponential smoothing method? Use only the months from March to December. Do not round intermediate calculations. Round your answers to three decimal places. MAD(a=0.3):MAD(a=0.9):p.p.p.p. Which method is better? The exponential smoothing with a smoothing constant of is better because it provides a MAD
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