Moving averages are often used to identify movements in stock prices. Monthly closing prices (dollars per share) for Alphabet (Google) Inc. from November of last year through October of this year are located in the file: Google (F21) (a) Develop a two-month moving average forecast for the monthly closing price of Google for November of this year. (b) Rework part (a) using the weighted moving average technique to smooth the time series. Use the following weighting system to create the forecast: Weights Period/Month 2-month MA Most Recent 0.7 Next Most Recent 0.3 (c) Use a = 0.7 to compute the exponential smoothing values for the time series. What is the forecast for February 2021? %3D (d) Compute the three measures of forecast accuracy (MAE, MSE and MAPE) for each of the three forecast methods in parts (a), (b) and (c). Which smoothing method provides the better forecast? Explain.

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Author:Amos Gilat
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Completely work the problems in excel.
Moving averages are often used to identify movements in stock prices. Monthly
closing prices (dollars per share) for Alphabet (Google) Inc. from November of last
year through October of this year are located in the file: Google (F21)
(a) Develop a two-month moving average forecast for the monthly closing
price of Google for November of this year.
(b) Rework part (a) using the weighted moving average technique to smooth
the time series. Use the following weighting system to create the
forecast:
Weights
Period/Month
2-month MA
Most Recent
0.7
Next Most Recent
0.3
(c) Use a = 0.7 to compute the exponential smoothing values for the time
series. What is the forecast for February 2021?
(d) Compute the three measures of forecast accuracy (MAE, MSE and
MAPE) for each of the three forecast methods in parts (a), (b) and (c).
Which smoothing method provides the better forecast? Explain.
MacBook Pro
@く*
%
&
5
6
Transcribed Image Text:Moving averages are often used to identify movements in stock prices. Monthly closing prices (dollars per share) for Alphabet (Google) Inc. from November of last year through October of this year are located in the file: Google (F21) (a) Develop a two-month moving average forecast for the monthly closing price of Google for November of this year. (b) Rework part (a) using the weighted moving average technique to smooth the time series. Use the following weighting system to create the forecast: Weights Period/Month 2-month MA Most Recent 0.7 Next Most Recent 0.3 (c) Use a = 0.7 to compute the exponential smoothing values for the time series. What is the forecast for February 2021? (d) Compute the three measures of forecast accuracy (MAE, MSE and MAPE) for each of the three forecast methods in parts (a), (b) and (c). Which smoothing method provides the better forecast? Explain. MacBook Pro @く* % & 5 6
Alphabet Inc. (Google)
Closing Price
$1,339.33
$1,162.81
$1,348.66
$1,428.92
$1,413.61
$1,482.96
$1,634.18
$1,469.60
$1,621.01
$1,760.74
$1,751.88
$1,787.25
Date
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
Jun.
Jul.
Aug.
Sept.
Oc.
MacBook Pro
Transcribed Image Text:Alphabet Inc. (Google) Closing Price $1,339.33 $1,162.81 $1,348.66 $1,428.92 $1,413.61 $1,482.96 $1,634.18 $1,469.60 $1,621.01 $1,760.74 $1,751.88 $1,787.25 Date Nov. Dec. Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sept. Oc. MacBook Pro
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