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End of Section Problem 15.6 Following are time-series data for eight different p

ID: 3181306 • Letter: E

Question

End of Section Problem 15.6

Following are time-series data for eight different periods. Use exponential smoothing to forecast the values for periods 3 through 8. Use the value for the first period as the forecast for the second period. Compute forecasts using two different values of alpha,   and . Compute the errors for each forecast and compare the errors produced by using the two different exponential smoothing constants.

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End of Section Problem 15.6

Following are time-series data for eight different periods. Use exponential smoothing to forecast the values for periods 3 through 8. Use the value for the first period as the forecast for the second period. Compute forecasts using two different values of alpha,   and . Compute the errors for each forecast and compare the errors produced by using the two different exponential smoothing constants.

Explanation / Answer

Time Period Value Forecast ( =.1) Forecast error ( =.1) Forecast ( =.8) Forecast error ( =.8) Value - Forecast Value - Forecast 1 211 2 228 211 17 211.0 17.0 3 236 212.7 23.3 224.6 11.4 4 241 215 26.0 233.7 7.3 5 242 217.6 24.4 239.5 2.5 6 227 220.1 6.9 241.5 -14.5 7 217 220.8 -3.8 229.9 -12.9 8 203 220.4 -17.4 219.6 -16.6