The US monthly infation rate for 2018 is shown below 537 MONTH INPLATION () 2.1 January February 2.2 March 2.4 Apri 2.5 May June PR 2.8 2.9 Compute the inflation rate for January 2019 using t exponential smoothing forecast using a 0.2 and then using 0.5. Assume that the forecast for January 2018 is 2.1. De not round intermediate s Aund your answers to three decimal places Forecast Denuary 2019-02) 2.351 Forecast Canuary 2019,-0.5) 2.727 What is the MAD for the forecasts generated using exponential smoothing method? HAD (2) 360 PA MAD (-0.5) which method is better? The exponential smoothing with a smoothing constant of 6.5 MONTH INFLATION () July 3.0 August 2.7 September October November December 2.3 2.5 2.2 1.9 months from March to December Do not round intermediate calculations. Round your answers to three decimal plass is better because it provides a lower MAD

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The US monthly inflation rate for 2018 is shown below:
537
PA
MAD (0.5)
Which method is better?
The exponential smoothing with a smoothing constant of 0.5
2.351
P.P.
MONTH
January
February
March
Apri
May
June
& Compute the inflation rate for January 2019 using the exponential smoothing forecast usinga- 0.2 and then using 0.5. Assume that the forecast for January 2018 is 2.1. Do not round intermediate calculations
Round your answers to three decimal places
Forecast Canuary 2019-0.2)
Forecast (January 2019, 0.5) 2.727
b. What is the MAD for the forecasts generated using exponential smoothing method? Use only the months from March to December bo net round intermediate calculations. Round your answers to three decimal places
HAD (0.2)
360
INPLATION (6)
2.1
2.2
2,4
2.5
2.8
2.9
MONTH
MY
August
September
October
November
December
INFLATION ()
3.0
2.7
2.3
2.5
2.2
1.9
is better because it provides a lower
MAD.
Transcribed Image Text:The US monthly inflation rate for 2018 is shown below: 537 PA MAD (0.5) Which method is better? The exponential smoothing with a smoothing constant of 0.5 2.351 P.P. MONTH January February March Apri May June & Compute the inflation rate for January 2019 using the exponential smoothing forecast usinga- 0.2 and then using 0.5. Assume that the forecast for January 2018 is 2.1. Do not round intermediate calculations Round your answers to three decimal places Forecast Canuary 2019-0.2) Forecast (January 2019, 0.5) 2.727 b. What is the MAD for the forecasts generated using exponential smoothing method? Use only the months from March to December bo net round intermediate calculations. Round your answers to three decimal places HAD (0.2) 360 INPLATION (6) 2.1 2.2 2,4 2.5 2.8 2.9 MONTH MY August September October November December INFLATION () 3.0 2.7 2.3 2.5 2.2 1.9 is better because it provides a lower MAD.
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