Answered step by step
Verified Expert Solution
Question
1 Approved Answer
(Use this information to answer questions 1 to question 2) Consider the following time series data: Week 1 2 3 4 5 6 Value 24
(Use this information to answer questions 1 to question 2) Consider the following time series data: Week 1 2 3 4 5 6 Value 24 13 20 12 19 23 1. (10 points) Compare three week moving average forecast with exponential smoothing forecast using (a=0.2). Which appears to provide better forecast based on MSE? (a) Three week moving average provides better forecast because MSE for three week moving average is more than exponential smoothing. (b) Three week moving average provides better forecast because MSE for three week moving average is less than exponential smoothing. (c) Exponential smoothing provides better forecast because MSE for exponential smooth- ing is more than three week moving average. (d) Exponential smoothing provides better forecast because MSE for exponential smooth- ing is less than three week moving average. W 2. (10 points) Compare exponential smoothing forecast using (a = 0.2) with exponential smoothing forecast using (a = 0.3). Which provides a better forecast using MSE? (a) Exponential smoothing forecast using (a = 0.2) provides better forecast because its MSE is higher. (b) Exponential smoothing forecast using (a = 0.2) provides better forecast because its MSE is lower. (c) Exponential smoothing forecast using (a = 0.3) provides better forecast because its MSE is higher. (d) Exponential smoothing forecast using (ox=0.3) provides better forecast because its MSE is lower
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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