8.) Create an exponential smoothing model that minimizes the MSE for the data set. Use Solver to determine the optimal value of α. What is the optimal value of α? Prepare a line graph comparing the exponential smoothing predictions against the original data. What are the forecasts for the next 2 years using this technique? Year Sales 1 283 2 288 3 336 4 388 5 406 6 412 7 416 8 435 9 428 10 435 11 462 12 452 13 474 14 476 15 497 16 487 17 523 18 528 19 532 20 552
8.) Create an exponential smoothing model that minimizes the MSE for the data set. Use Solver to determine the optimal value of α. What is the optimal value of α? Prepare a line graph comparing the exponential smoothing predictions against the original data. What are the forecasts for the next 2 years using this technique? Year Sales 1 283 2 288 3 336 4 388 5 406 6 412 7 416 8 435 9 428 10 435 11 462 12 452 13 474 14 476 15 497 16 487 17 523 18 528 19 532 20 552
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter13: Regression And Forecasting Models
Section: Chapter Questions
Problem 42P: The file P13_42.xlsx contains monthly data on consumer revolving credit (in millions of dollars)...
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8.) Create an exponential smoothing model that minimizes the MSE for the data set. Use Solver to determine the optimal value of α.
- What is the optimal value of α?
- Prepare a line graph comparing the exponential smoothing predictions against the original data.
- What are the
forecasts for the next 2 years using this technique?
Year | Sales |
1 | 283 |
2 | 288 |
3 | 336 |
4 | 388 |
5 | 406 |
6 | 412 |
7 | 416 |
8 | 435 |
9 | 428 |
10 | 435 |
11 | 462 |
12 | 452 |
13 | 474 |
14 | 476 |
15 | 497 |
16 | 487 |
17 | 523 |
18 | 528 |
19 | 532 |
20 | 552 |
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