Consider the following time series data.

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
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Chapter1: Starting With Matlab
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Answer parts C & D

Please round your answers according to the questions 

Consider the following time series data.
Month
1
2
3
4
6.
7
Value
24
13 20 12
19
23
15
Transcribed Image Text:Consider the following time series data. Month 1 2 3 4 6. 7 Value 24 13 20 12 19 23 15
(c)
Use a = 0.2 to compute the exponential smoothing forecasts for the time series. (Round your answers to two decimal places.)
Time Series
Month
Forecast
Value
1
24
2
13
3
20
4
12
5
19
23
7
15
Compute MSE. (Round your answer to two decimal places.)
MSE =
What is the forecast for month 8? (Round your answer to two decimal places.)
(d) Compare the three-month moving average approach with the exponential smoothing approach using a = 0.2. Which appears to provide more accurate forecasts based on MSE?
The three-month moving average provides a better forecast since it has a smaller MSE than the exponential smoothing using a = 0.2.
The three-month moving average provides a better forecast since it has a larger MSE than the exponential smoothing using a = 0.2.
The exponential smoothing using a = 0.2 provides a better forecast since it has a smaller MSE than the three-month moving average.
The exponential smoothing using a = 0.2 provides a better forecast since it has a larger MSE than the three-month moving average.
O O O O
Transcribed Image Text:(c) Use a = 0.2 to compute the exponential smoothing forecasts for the time series. (Round your answers to two decimal places.) Time Series Month Forecast Value 1 24 2 13 3 20 4 12 5 19 23 7 15 Compute MSE. (Round your answer to two decimal places.) MSE = What is the forecast for month 8? (Round your answer to two decimal places.) (d) Compare the three-month moving average approach with the exponential smoothing approach using a = 0.2. Which appears to provide more accurate forecasts based on MSE? The three-month moving average provides a better forecast since it has a smaller MSE than the exponential smoothing using a = 0.2. The three-month moving average provides a better forecast since it has a larger MSE than the exponential smoothing using a = 0.2. The exponential smoothing using a = 0.2 provides a better forecast since it has a smaller MSE than the three-month moving average. The exponential smoothing using a = 0.2 provides a better forecast since it has a larger MSE than the three-month moving average. O O O O
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