Consider the following time series data:
a. Use α = 0.2 to compute the exponential smoothing values for the time series. Compute MSE and a forecast for year 11.
b. Use trial and error to find a value of the exponential smoothing coefficient α that results in a smaller MSE than what you calculated for α = 0.2.
c. Compute the forecast for year 11 using the smoothing coefficient α selected using trial error.

Question

Consider the following time series data:
  a. Use α = 0.2 to compute the exponential smoothing values for the time series. Compute MSE and a forecast for year 11.
b. Use trial and error to find a value of the exponential smoothing coefficient α that results in a smaller MSE than what you calculated for α = 0.2.
c. Compute the forecast for year 11 using the smoothing coefficient α selected using trial error.

Quizplus · Accepted Answer

The Answer of Consider the following time series data:
  a. Use α = 0.2 to compute the exponential smoothing values for the time series. Compute MSE and a forecast for year 11.
b. Use trial and error to find a value of the exponential smoothing coefficient α that results in a smaller MSE than what you calculated for α = 0.2.
c. Compute the forecast for year 11 using the smoothing coefficient α selected using trial error.

Consider the Following Time Series Data