Question

Develop a three-week moving average for this time series. Compute MSE and a forecast for week 7. Round your answers to two decimal places.

Week	Time Series Value	Forecast
1	18
2	13
3	16
4	11
5	17
6	14

MSE :

The forecast for week 7 :

Use = 0.2 to compute the exponential smoothing values for the time series. Compute MSE and a forecast for week 7. Round your answers to two decimal places.

Week	Time Series Value	Forecast
1	18
2	13
3	16
4	11
5	17
6	14

MSE :

The forecast for week 7 :

Compare the three-week moving average forecast with the exponential smoothing forecast using = 0.2. Which appears to provide the better forecast based on MSE?



Explain.

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Use trial and error to find a value of the exponential smoothing coefficient that results in a smaller MSE than what you calculated for = 0.2. Find a value of for the smallest MSE. Round your answer to three decimal places.

=

Answer 1

Answer 2