Consider the following time series data. Week 1 2 3 4 5 6 Value 18 13 16 11 17 14 a. Use α = 0.2 to compute the exponential smoothing forecasts for this time series. Compute MSE. b. Use exponential smoothing with α = 0.2 to develop a forecast for week 7. c. Use a smoothing constant of α = 0.4 to compute the exponential smoothing forecasts. Compute MSE. d. Use exponential smoothing with α = 0.4 to develop a forecast for week 7

Consider the following time series data. Week 1 2 3 4 5 6 Value 18 13 16 11 17 14 a. Use α = 0.2 to compute the exponential smoothing forecasts for this time series. Compute MSE. b. Use exponential smoothing with α = 0.2 to develop a forecast for week 7. c. Use a smoothing constant of α = 0.4 to compute the exponential smoothing forecasts. Compute MSE. d. Use exponential smoothing with α = 0.4 to develop a forecast for week 7

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter13: Regression And Forecasting Models

Section13.7: Exponential Smoothing Models

Problem 26P: The file P13_26.xlsx contains the monthly number of airline tickets sold by the CareFree Travel...

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Concept explainers

Forecasting in Business

Forecasting is the process of predicting the future based on the past and the present data and circumstances. In other words, forecasting is the act of making a detailed analysis of future events based on the decisions made in the past as well as the present. Forecasting plays a very important role in operational management as it helps in planning and decision-making. It is not only important for the success of a business but also contributes to individual growth and success. Many business organizations or companies have failed due to the shortcomings of their forecasting.

Question

100%

Consider the following time series data.

Week	1	2	3	4	5	6
Value	18	13	16	11	17	14

a. Use α = 0.2 to compute the exponential smoothing forecasts for this time series. Compute MSE.

b. Use exponential smoothing with α = 0.2 to develop a forecast for week 7.

c. Use a smoothing constant of α = 0.4 to compute the exponential smoothing forecasts. Compute MSE.

d. Use exponential smoothing with α = 0.4 to develop a forecast for week 7.

Leveraging special tenchniques in analyzing historical data to predict future trends. Forecasting covers the methods and types of forecasting and their application to case studies.

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