5. Exercise 5.5A firm experienced the demand shown in the following table.Fill in the table by preparing forecasts based on a five-year moving average, a three-year movingaverage, and exponential smoothing (w = 0.9forecasts may be begun by assuming Y t+ F Yt •)and w = 0.3 ). (Note: The exponential smoothingMoving AverageActual Demand (5-year) (3-year)Exponential Smoothing(W = 0.9)Year(W = 0.3)2000900200188590090020028752003870887 ▼2004870877 ▼2005875880872 Y200688587587220079008758772008920880887 -2009945890902 Y2010905922The following table shows the square errors,(Y; - T1-) , for forecasts from 2005 through2009.Fill the table by calculating the root mean square error (RMSE) for each of the methods.Square ErrorExponential SmoothingMoving AverageYear (5-year) (3-year) (W = 0.9)(W = 0.3)20052592525200610016910036200762552925636120081,6001,0894841,08920093,0251,8497292,304RMSEBased on the RMSE criterion, which of the forecasting methods is the most accurate?Exponential smoothing (w = 0.3)Five-year moving averageThree-year moving averageExponential smoothing (w = 0.9)

Compute 5-year moving average demand forecast using Fy = (Dy-1 + Dy-2 + Dy-3 + Dy-4 + Dy-5) / 5…

A firm experienced the demand shown in the following table. Fill in the table by preparing forecasts based on a five-year moving average, a three-year moving average, and exponential smoothing (w = 0.9 and w = 0.3 ). (Note: The exponential smoothing forecasts may be begun by assuming Yt+ F Y; •)

A firm experienced the demand shown in the following table. Fill in the table by preparing forecasts based on a five-year moving average, a three-year moving average, and exponential smoothing (w = 0.9 and w = 0.3 ). (Note: The exponential smoothing forecasts may be begun by assuming Yt+ F Y; •)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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