Question
Tom and Sadie wanted to forecast the property values in the Bay Area given the value of similar homes in the last 12 months. Month
Tom and Sadie wanted to forecast the property values in the Bay Area given the value of similar homes in the last 12 months.
Month | Property Values |
January | $133,890 |
February | $135,000 |
March | $135,790 |
April | $137,300 |
May | $138,130 |
June | $139,100 |
July | $139,900 |
August | $141,120 |
September | $141,890 |
October | $143,230 |
November | $144,000 |
December | $145,290 |
Prepare a forecast for January of next year using exponential smoothing with alpha = 0.2 to make it easy, use forecast for November to be $142,650
$140,463
$141,428
$143,783
$144,988
Preprare a forecast for January of next year using naive approach
$133,890
$143,603
$144,000
$145,290
Prepare a forecast for January of next year using a 4 period moving average technique
$133,890
$143,603
$144,179
$145,290
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