Answered: Given the following data, use…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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Question

Given the following data, use exponential smoothing with α=0.1 and α=0.6 to generate forecasts for periods 2 through 6. Use Mad and MEE to decide which of the two models produce a netter forecast. (Assume the forecast for Period 1 is 17)

Period	Actual	Forecast
1	14	17
2	16
3	16
4	11
5	12
6	17

a.What is the forecast for Period 6 when you use α=0.6? (Express it to 2 decimal places)

Answer:

b.What is the value of Mean Absolute Deviation (MAD) when α=0.6? Calculate to 3 decimal places. (Use all forecasted values from Period 1 to Period 6.)

Answer:

c.Which method produces a better forecast? (Use all forecasted values from Period 1 to Period 6.)

Select one:

α=0.1 produces a better forecast measured both by MAD and MSE.
When we use MAD, α=0.1 produces a better forecast.
When we use MSE, α=0.1 produces a better forecast.
α=0.6 produces a better forecast measured both by MAD and MSE.

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