Which of the above forecasts will have the highest magnitude in actual (absolute) terms? a. 3-period moving average B.Simple Moving Average C. (6,4,3,2) D. Alpha = .3
Which of the above forecasts will have the highest magnitude in actual (absolute) terms? a. 3-period moving average B.Simple Moving Average C. (6,4,3,2) D. Alpha = .3
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
Related questions
Question
Which of the above forecasts will have the highest magnitude in actual (absolute) terms?
a. 3-period moving average
B.Simple Moving Average
C. (6,4,3,2)
D. Alpha = .3
Transcribed Image Text:### Forecasting Method Comparison Table
The following table presents the error metrics for various forecasting methods. The methods are compared using four different error metrics: RSFE, MFE, MAPE, and SDFE.
| **Method** | **(6,4,3,2)** | **3P avg** | **Alpha 0.3** | **SMA** |
|--------------|--------------|-------------|---------------|---------|
| **RSFE** | -26 | -15 | -2 | -13 |
| **MFE** | -6.5 | -3 | -0.4 | -2.1 |
| **MAPE** | 16.22 | 12.11 | 14.21 | 15.3 |
| **SDFE** | 1.5 | 11.26 | 11.3 | 12.2 |
**Key:**
- **RSFE (Running Sum of Forecast Errors)**: This indicates the accumulated sum of errors in the forecast.
- **MFE (Mean Forecast Error)**: This measures the average forecast error over a period.
- **MAPE (Mean Absolute Percentage Error)**: This indicates the average absolute percentage error of the forecasts.
- **SDFE (Standard Deviation of Forecast Error)**: This measures the dispersion or variability in forecast error values.
**Explanation of Methods:**
1. **(6,4,3,2)**: Possibly a weighted moving average with respective weights.
2. **3P avg**: Three-period moving average.
3. **Alpha 0.3**: Exponential smoothing with a smoothing constant (alpha) of 0.3.
4. **SMA**: Simple Moving Average.
This table helps in understanding and comparing the accuracy of different forecasting methods based on various error metrics, aiding in selecting the most appropriate method for a given dataset.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, statistics and related others by exploring similar questions and additional content below.Recommended textbooks for you
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman