4. Suppose we have a summary of forecasting techniques calculation results for Gundam Auto SalesInc. (in the prior item) as follows:MeanNextStandardPeriodErrorForecasting Method UsedForecast(MSE)1.3-period UnWMA10.423.242.4-period UnWMA10.383.513.3-period WMA10.833.034. Simple Exponential Smoothing5. Trend Projection8.245.0411.431.16a. Which among the techniques is the most reliable?b. What does the result of the most reliable technique say?

Next Stândard Period Error Forecasting Method Used Forecast (MSE) 1.3-period UnWMA 10.42 3.24 2.4-period UnWMA 3.3-period WMA 10.38 3.51 10.83 3.03 4. Simple Exponential Smoothing 5. Trend Projection 8.24 5.04 11.43 1.16

Next Stândard Period Error Forecasting Method Used Forecast (MSE) 1.3-period UnWMA 10.42 3.24 2.4-period UnWMA 3.3-period WMA 10.38 3.51 10.83 3.03 4. Simple Exponential Smoothing 5. Trend Projection 8.24 5.04 11.43 1.16

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

4. Suppose we have a summary of forecasting techniques calculation results for Gundam Auto Sales
Inc. (in the prior item) as follows:
Mean
Next
Standard
Period
Error
Forecasting Method Used
Forecast
(MSE)
1.3-period UnWMA
10.42
3.24
2.4-period UnWMA
10.38
3.51
3.3-period WMA
10.83
3.03
4. Simple Exponential Smoothing
5. Trend Projection
8.24
5.04
11.43
1.16
a. Which among the techniques is the most reliable?
b. What does the result of the most reliable technique say?

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