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The Victory Plus Mutual Fund of growth stocks has had the following average monthly price forthe past 10 months:Month Fund Price1              62.72             63.93              68.04                66.45               67.26                 65.87                    68.28                69.39                  67.210                70.1Compute the exponentially smoothed forecast with a = .40 the adjusted exponential smoothing forecastwith a = .40 and B=30 and the linear trend line forecast. Compare the accuracy of the threeforecasts, using cumulative error and MAD, and indicate which forecast appears to be most accurate.

The Victory Plus Mutual Fund of growth stocks has had the following average monthly price forthe past 10 months:Month Fund Price1              62.72             63.93              68.04                66.45               67.26                 65.87                    68.28                69.39                  67.210                70.1Compute the exponentially smoothed forecast with a = .40 the adjusted exponential smoothing forecastwith a = .40 and B=30 and the linear trend line forecast. Compare the accuracy of the threeforecasts, using cumulative error and MAD, and indicate which forecast appears to be most accurate.

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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The Victory Plus Mutual Fund of growth stocks has had the following average monthly price for
the past 10 months:
Month Fund Price
1              62.7
2             63.9
3              68.0
4                66.4
5               67.2
6                 65.8
7                    68.2
8                69.3
9                  67.2
10                70.1
Compute the exponentially smoothed forecast with a = .40 the adjusted exponential smoothing forecast
with a = .40 and B=30 and the linear trend line forecast. Compare the accuracy of the three
forecasts, using cumulative error and MAD, and indicate which forecast appears to be most accurate.

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