Actual sales of a company (in millions of dollars) for January through April are shown below.
a.Use = 0.3 to compute the exponential smoothing values for sales. Compute MSE and forecast sales for May. Show all of your computations from February through May.
b.Use = 0.1 to compute the exponential smoothing values for sales. Compute MSE and forecast sales for May. Show all of your computations from February through May.
c.Based on MSE, which provides a better forecast? Explain why?

Question

Actual sales of a company (in millions of dollars) for January through April are shown below.  
a.Use  = 0.3 to compute the exponential smoothing values for sales. Compute MSE and forecast sales for May. Show all of your computations from February through May. 
b.Use  = 0.1 to compute the exponential smoothing values for sales. Compute MSE and forecast sales for May. Show all of your computations from February through May. 
c.Based on MSE, which  provides a better forecast? Explain why?

Quizplus · Accepted Answer

The Answer of Actual sales of a company (in millions of dollars) for January through April are shown below.  
a.Use  = 0.3 to compute the exponential smoothing values for sales. Compute MSE and forecast sales for May. Show all of your computations from February through May. 
b.Use  = 0.1 to compute the exponential smoothing values for sales. Compute MSE and forecast sales for May. Show all of your computations from February through May. 
c.Based on MSE, which  provides a better forecast? Explain why?

Actual Sales of a Company (In Millions of Dollars) for January