Consider the table below which displays the price of a commodity for six consecutive years. $$\begin{array} { c | c }
\hline \text { Year } & \text { Price (dollars) } \
\hline 1 & 250 \
\hline 2 & 255 \
\hline 3 & 253 \
\hline 4 & 255 \
\hline 5 & 259 \
\hline 6 & 261 \
\hline
\end{array}$$ a. Use the Holt model to forecast values for Years 7-10 using $\mathrm { w } = 0.6$ and $\mathrm { v } = 0.5$.
b. Calculate the forecast errors for Years 7-10 if the actual values in those years are 263, 267, 269, 268 respectively.
c. Calculate MAD, MAPE, and RMSE, using the forecast errors for Years 7-10.

Question

Consider the table below which displays the price of a commodity for six consecutive years. $$\begin{array} { c | c } 
\hline \text { Year } & \text { Price (dollars) } \
\hline 1 & 250 \
\hline 2 & 255 \
\hline 3 & 253 \
\hline 4 & 255 \
\hline 5 & 259 \
\hline 6 & 261 \
\hline
\end{array}$$ a. Use the Holt model to forecast values for Years 7-10 using $\mathrm { w } = 0.6$ and $\mathrm { v } = 0.5$.
b. Calculate the forecast errors for Years 7-10 if the actual values in those years are 263, 267, 269, 268 respectively.
c. Calculate MAD, MAPE, and RMSE, using the forecast errors for Years 7-10.

Quizplus · Accepted Answer

The Answer of Consider the table below which displays the price of a commodity for six consecutive years. $$\begin{array} { c | c } 
\hline \text { Year } & \text { Price (dollars) } \
\hline 1 & 250 \
\hline 2 & 255 \
\hline 3 & 253 \
\hline 4 & 255 \
\hline 5 & 259 \
\hline 6 & 261 \
\hline
\end{array}$$ a. Use the Holt model to forecast values for Years 7-10 using $\mathrm { w } = 0.6$ and $\mathrm { v } = 0.5$.
b. Calculate the forecast errors for Years 7-10 if the actual values in those years are 263, 267, 269, 268 respectively.
c. Calculate MAD, MAPE, and RMSE, using the forecast errors for Years 7-10.

Consider the Table Below Which Displays the Price of a Commodity