Exhibit 14-3
The quarterly numbers of applications for home mortgage loans at a branch office of a large bank are recorded in the table below.
-Refer to Exhibit 14-3. Use simple exponential smoothing to forecast these data, requesting 4 quarters of future forecasts. Use the default smoothing constant of 0.10. Is this better than the moving average model?

Question

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The Answer of Exhibit 14-3
The quarterly numbers of applications for home mortgage loans at a branch office of a large bank are recorded in the table below.
-Refer to Exhibit 14-3. Use simple exponential smoothing to forecast these data, requesting 4 quarters of future forecasts. Use the default smoothing constant of 0.10. Is this better than the moving average model?

Exhibit 14-3 the Quarterly Numbers of Applications for Home Mortgage Loans at Loans