Practical Management Science
6th Edition
ISBN: 9781337671989
Author: WINSTON
Publisher: Cengage
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Chapter 14.2, Problem 11P
Summary Introduction
To perform: Classification using NeuralTools and run the algorithm for second time using only the top five variables.
Introduction: Simulation model is the digital prototype of the physical model that helps to
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5. Table 1 shows the daily stock price of Apple Inc. (AAPL) in the past few trading days.
Table 1. Daily stock prices of Apple Inc.
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Date
Nov
Nov
Nov
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Nov
Nov
Nov
Nov
Stock
255.1 256.7 256.4 256.5 259.4 260.1 262.2 262
264.5 262.6 265.8 265.7
Price
Since the stock market closes on weekends, Table 1 only shows stock prices during weekdays. Please
answer the following questions based on the given information.
(a) Apply the moving average (MA) model with a three-day lag (q = 3) and a five-day lag (q =5) to forecast
Apple Inc.'s stock price in the following three trading days (i.e., its stock price on November 19, 20 and 21).
(Hint: calculate the stock price on November 19 first, and then use the estimated stock price of November
19 to forecast the stock price on November 20.) (ROUND TO ONE…
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