THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
The table below is the data set of the Shiller Real Home Price Index for the years 1894-1904.
Use a smoothing constant of α = 0.8 to determine the forecasts using simple exponential smoothing.
-The time-series model Xt = Tt × St × Ct × It is used for forecasting,where Tt,St,Ct,and It are respectively the trend,seasonal,cyclical,and irregular components of the time series,and Xt is the value of the time series at time t.The following estimates are obtained: t = 125,
t = 0.92,
t = 1.04,and
= 0.90.The model will produce a forecast of:
A) 127.86
B) 122.14
C) 107.64
D) 102.99
Correct Answer:
Verified
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