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This question on forecasting: Three years of monthly lawn-maintenance expenses ($) for a six-unit apartment house in southern Florida follow. Month January February March April
This question on forecasting:
Three years of monthly lawn-maintenance expenses ($) for a six-unit apartment house in southern Florida follow. Month January February March April May June July August September October November December Year 1 170 180 205 230 240 315 360 290 240 240 230 195 Year 2 180 205 215 245 265 330 400 335 260 270 255 220 Year 3 195 210 230 280 290 390 420 330 290 295 280 250 a) Using a 3-mth Moving average, an exponential smoothing model with a smoothing constant of 0.1, and a linear trend model, generate a forecast for January of Year 4. b) Which model would you adopt in a) and why? c) Which period experiences the greatest seasonal impact? d) Discuss the results of your linear trend model. Three years of monthly lawn-maintenance expenses ($) for a six-unit apartment house in southern Florida follow. Month January February March April May June July August September October November December Year 1 170 180 205 230 240 315 360 290 240 240 230 195 Year 2 180 205 215 245 265 330 400 335 260 270 255 220 Year 3 195 210 230 280 290 390 420 330 290 295 280 250 a) Using a 3-mth Moving average, an exponential smoothing model with a smoothing constant of 0.1, and a linear trend model, generate a forecast for January of Year 4. b) Which model would you adopt in a) and why? c) Which period experiences the greatest seasonal impact? d) Discuss the results of your linear trend model
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