EBK BASIC BUSINESS STATISTICS
14th Edition
ISBN: 9780134685168
Author: STEPHAN
Publisher: YUZU
expand_more
expand_more
format_list_bulleted
Videos
Textbook Question
Chapter 16, Problem 6PS
How have stocks performed in the past? The following table presents the data stored in Stock Performance, which show the performance of a broad measure of stock performance (by percentage (by per percentage) for each decade from the 1830s through the 2000s:
a. Plot the time series.
b. Fit a three-period moving average to the data and plot the results.
c. Using a smoothing coefficient of
d. What is your exponentially smoothed forecast for the 2010s?
e. Repeat (c) and (d), using
f. Compare the results of (d) and (e).
g. What conclusions can you reach concerning how stock have performed in the past?
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
The following table is a selection of average prices for a gallon of gas in the United States.
Year Gas Price
Index Value
2001
[A]
2003
[B]
2004
2018
[A] =
Build an index from these values, using 2003 as the base year.
Round each index value to the nearest tenth.
[B] =
=
[C] =
$1.42
$1.56
$1.85
$2.72
[D] =
[C]
[D]
In 2013 the average houshold credit card balance was $9,884. In 2016 the average houshold credit card balance was $11,184.
(a) Compute the average yearly change in credit card balance from 2013 to 2016
(b) Use this to predict what the average credit card balance was in:i. 2014ii. 2015iii. 2017iv. 2018
(c) In 2014 the avearge balance was $10,450 and in 2015 the avearge balance was $10,762. Where your predictions good for those years?
(d) In 2017 the average balance was $10,821 and in 2018 the aveage balance was $9,333. Where your predictions good for those years?
The following table reports the percentage of stocks in a portfolio for nine quarters:
a. Construct a time series plot. What type of pattern exists in the data?b. Use trial and error to find a value of the exponential smoothing coefficient a thatresults in a relatively small MSE.c. Using the exponential smoothing model you developed in part b, what is the forecastof the percentage of stocks in a typical portfolio for the second quarter of year 3?
Chapter 16 Solutions
EBK BASIC BUSINESS STATISTICS
Ch. 16 - If you are using exponential smoothing for...Ch. 16 - Consider a nine-year moving average used to smooth...Ch. 16 - You are using exponential smoothing on an annual...Ch. 16 - Prob. 4PSCh. 16 - Prob. 5PSCh. 16 - How have stocks performed in the past? The...Ch. 16 - Prob. 7PSCh. 16 - Prob. 8PSCh. 16 - Prob. 9PSCh. 16 - Prob. 10PS
Ch. 16 - The linear trend forecasting equation for an...Ch. 16 - There has been much publicity about bounces paid...Ch. 16 - Prob. 13PSCh. 16 - Prob. 14PSCh. 16 - Prob. 15PSCh. 16 - The data shown in the following table and stored...Ch. 16 - Prob. 17PSCh. 16 - Prob. 18PSCh. 16 - Prob. 19PSCh. 16 - Prob. 20PSCh. 16 - Prob. 21PSCh. 16 - Prob. 22PSCh. 16 - You are given an annual time series with 40...Ch. 16 - Prob. 24PSCh. 16 - Prob. 25PSCh. 16 - Prob. 26PSCh. 16 - Prob. 27PSCh. 16 - Prob. 28PSCh. 16 - Prob. 29PSCh. 16 - Using the average baseball salary from 200 through...Ch. 16 - Using the yearly amount of solar power generated...Ch. 16 - The following residuals are from a linear trend...Ch. 16 - Prob. 33PSCh. 16 - Prob. 34PSCh. 16 - Prob. 35PSCh. 16 - Prob. 36PSCh. 16 - Prob. 37PSCh. 16 - Prob. 38PSCh. 16 - Prob. 39PSCh. 16 - Prob. 40PSCh. 16 - In forecasting daily time-series data, how many...Ch. 16 - In forecasting a quarterly time series over the...Ch. 16 - Prob. 43PSCh. 16 - Prob. 44PSCh. 16 - Are gasoline prices higher during the height of...Ch. 16 - Prob. 46PSCh. 16 - Prob. 47PSCh. 16 - The file Silver-Q contains the price in London for...Ch. 16 - Prob. 49PSCh. 16 - What is a time series?Ch. 16 - What are the different components of a time-series...Ch. 16 - What is the difference between moving average and...Ch. 16 - Prob. 53PSCh. 16 - How does the least-squares linear trend...Ch. 16 - How does autoregressive modelling differ from the...Ch. 16 - What are the different approaches to choosing an...Ch. 16 - What is the major difference between using SYX and...Ch. 16 - How does forecasting for monthly or quarterly data...Ch. 16 - Prob. 60PSCh. 16 - The monthly commercial and residential prices for...Ch. 16 - The data stored in McDonalds represent the gross...Ch. 16 - Teachers’ Retirement System of the City of New...Ch. 16 - Prob. 64PS
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.Similar questions
- Table 6 shows the year and the number ofpeople unemployed in a particular city for several years. Determine whether the trend appears linear. If so, and assuming the trend continues, in what year will the number of unemployed reach 5 people?arrow_forwardTable 3 gives the annual sales (in millions of dollars) of a product from 1998 to 20006. What was the average rate of change of annual sales (a) between 2001 and 2002, and (b) between 2001 and 2004?arrow_forwardFind the mean hourly cost when the cell phone described above is used for 240 minutes.arrow_forward
- The US. import of wine (in hectoliters) for several years is given in Table 5. Determine whether the trend appearslinear. Ifso, and assuming the trend continues, in what year will imports exceed 12,000 hectoliters?arrow_forwardWhat does the y -intercept on the graph of a logistic equation correspond to for a population modeled by that equation?arrow_forwardAnnual revenue for Corning Supplies grew by 5.5% in 2010, 1.1% in 2011, -3.5% in 2012, -1.1% in 2013,and 1.8% in 2014. What is the mean growth annual rate over this period?arrow_forward
- The following table gives the approximate increase in the average price of a movie ticket every two years since 1990. If the price in 2004 is $6.99, what was the price of a ticket in 1990? Do not include a dollar sign in your answer. Starting Year 2-Year Change 1990 0.50 1992 -0.30 1994 0.25 1996 1.20 1998 0.30 2000 0.40 2002 0.2arrow_forwardThe accompanying data represent health care expenditures per capita (per person) as a percentage of the U.S. gross domestic product (GDP) from 2007 to 2013. Gross domestic product is the total value of all goods and services created during the course of the year Complete parts (a) through (c) below. Click the icon to view the data table. (a) Construct a time-series plot that a politician would create to support the position that health care expenditures are increasing and must be slowed. Choose the correct graph below OD. O C. OB OA A Q A Q Q 25,000+ 11,000 Q Q 3 2 G HIER 11200 2H 7,000++ C 2013 of + 2013 2007 2007 Year Year Year (b) Construct a time-series plot that the health care industry would create to refute the opinion of the politician. Choose the correct graph below. OB. O C. O A. A Q A Q 11,000 Q (C) 7,000+ 201 20 7.000+++++++* 2007 2007 2013 2013 Year Year (c) Explain how different measures may be used to support two completely different positions. Choose the correct answer…arrow_forwardIn the last three years, there have been changes of 55%, 3% and 2% in the production amount of a good, respectively. What is the geometric mean of the annual rate of change?arrow_forward
- Please answer asap I really need helparrow_forwardIf an asset declines in value from $5000 to $3500 over nine years, what is the mean annual growth rate in the asset's value over these nine years?arrow_forwardWhat characteristics would you expect from a time series that describes the number of vehicles travelling through the road Gotthard tunnel each day from the 1st of January 1985 to the 1st of January 2000? Select one or more: O a. An yearly seasonal component. O b. Trying to do forecasting is pointless. O C. An increasing trend. O d. Some degree of noise. O e. A weekly seasonal component.arrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
Algebra and Trigonometry (MindTap Course List)AlgebraISBN:9781305071742Author:James Stewart, Lothar Redlin, Saleem WatsonPublisher:Cengage Learning
Functions and Change: A Modeling Approach to Coll...AlgebraISBN:9781337111348Author:Bruce Crauder, Benny Evans, Alan NoellPublisher:Cengage Learning
College AlgebraAlgebraISBN:9781305115545Author:James Stewart, Lothar Redlin, Saleem WatsonPublisher:Cengage Learning
Glencoe Algebra 1, Student Edition, 9780079039897...AlgebraISBN:9780079039897Author:CarterPublisher:McGraw Hill
Algebra and Trigonometry (MindTap Course List)
Algebra
ISBN:9781305071742
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:Cengage Learning
Functions and Change: A Modeling Approach to Coll...
Algebra
ISBN:9781337111348
Author:Bruce Crauder, Benny Evans, Alan Noell
Publisher:Cengage Learning
College Algebra
Algebra
ISBN:9781305115545
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:Cengage Learning
Glencoe Algebra 1, Student Edition, 9780079039897...
Algebra
ISBN:9780079039897
Author:Carter
Publisher:McGraw Hill
Time Series Analysis Theory & Uni-variate Forecasting Techniques; Author: Analytics University;https://www.youtube.com/watch?v=_X5q9FYLGxM;License: Standard YouTube License, CC-BY
Operations management 101: Time-series, forecasting introduction; Author: Brandoz Foltz;https://www.youtube.com/watch?v=EaqZP36ool8;License: Standard YouTube License, CC-BY