5. The values of Alabama building contracts (in millions of dollars) for a 12-month period follow. 240 350 230 260 280 320 220 310 240 310 240 230 a. Construct a time series plot. What type of pattern exists in the data? b. Compare a three-month moving average forecast with an exponential smoothing forecast. Use a=0.2. Which provides the better forecasts based on

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5. The values of Alabama building contracts (in millions of dollars) for a 12-month
period follow.
240 350 230 260 280 320 220 310 240 310 240 230
a. Construct a time series plot. What type of pattern exists in the data?
b. Compare a three-month moving average forecast with an exponential
smoothing forecast. Use a=0.2. Which provides the better forecasts based on
MSE?
c. What is the forecast for the next month
Transcribed Image Text:5. The values of Alabama building contracts (in millions of dollars) for a 12-month period follow. 240 350 230 260 280 320 220 310 240 310 240 230 a. Construct a time series plot. What type of pattern exists in the data? b. Compare a three-month moving average forecast with an exponential smoothing forecast. Use a=0.2. Which provides the better forecasts based on MSE? c. What is the forecast for the next month
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