The Victory Plus Mutual Fund of growth stocks has had the following average monthly price for the past 10 months:MonthFund Price162.7263.9368.0466.4567.2665.8768.2869.3967.210 70.1 Compute the forecast for Month 11 using the exponentially smoothed forecast with α=.40,Compute the forecast for Month 11 using the adjusted exponential smoothing forecast with α=.40and β=.30, andCompute the forecast for Month 11 using the linear trend line forecast. (Compute a and b by constructing columns xy and x^2)Compare the accuracy of the three forecasts, using cumulative error and MAD, and indicate which forecast appears to be most accurate.

Note: - Since we can answer only up to three subparts we will answer the first three(1, 2, and 3)…

Answered: The Victory Plus Mutual Fund of growth…

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:

Compute the forecast for Month 11 using the exponentially smoothed forecast with α=.40,
Compute the forecast for Month 11 using the adjusted exponential smoothing forecast with α=.40and β=.30, and
Compute the forecast for Month 11 using the linear trend line forecast. (Compute a and b by constructing columns xy and x^2)
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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