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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.

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.

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
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**Stock Price Forecasting Using Moving Averages:** 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: | Period/Month | 2-month MA | |------------------|------------| | Most Recent | 0.7 | | Next Most Recent | 0.3 | **(c)** Use \( \alpha = 0.7 \) 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.
Transcribed Image Text:**Stock Price Forecasting Using Moving Averages:** 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: | Period/Month | 2-month MA | |------------------|------------| | Most Recent | 0.7 | | Next Most Recent | 0.3 | **(c)** Use \( \alpha = 0.7 \) 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.
# Alphabet Inc. (Google) Stock Closing Prices The table below displays the monthly closing prices for Alphabet Inc. (Google) stocks over a series of months. Each line represents the closing price for a given month. | Date | Closing Price | |-------|---------------| | Nov. | $1,339.33 | | Dec. | $1,162.81 | | Jan. | $1,348.66 | | Feb. | $1,428.92 | | Mar. | $1,413.61 | | Apr. | $1,482.96 | | May | $1,634.18 | | Jun. | $1,469.60 | | Jul. | $1,621.01 | | Aug. | $1,760.74 | | Sept. | $1,751.88 | | Oct. | $1,787.25 | This data can be used to analyze trends in the stock market performance of Alphabet Inc. over the specified months.
Transcribed Image Text:# Alphabet Inc. (Google) Stock Closing Prices The table below displays the monthly closing prices for Alphabet Inc. (Google) stocks over a series of months. Each line represents the closing price for a given month. | Date | Closing Price | |-------|---------------| | Nov. | $1,339.33 | | Dec. | $1,162.81 | | Jan. | $1,348.66 | | Feb. | $1,428.92 | | Mar. | $1,413.61 | | Apr. | $1,482.96 | | May | $1,634.18 | | Jun. | $1,469.60 | | Jul. | $1,621.01 | | Aug. | $1,760.74 | | Sept. | $1,751.88 | | Oct. | $1,787.25 | This data can be used to analyze trends in the stock market performance of Alphabet Inc. over the specified months.
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