Following are time-series data for eight different periods. Use exponential smoo
ID: 3052078 • Letter: F
Question
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, =.1 and =.8 . Compute the errors for each forecast and compare the errors produced by using the two different exponential smoothing constants.
LINK TO TEXT
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, =.1 and =.8 . Compute the errors for each forecast and compare the errors produced by using the two different exponential smoothing constants.
Explanation / Answer
as we know for exponential forecasting :
forcast =alpha*last month actual+(1-alpha)*last month forecast
therefore for =0.1:
for =0.8:
please revert for any clarification required/
Time Period Value Forecast ( =.1) Forecast error ( =.1) Value - Forecast 1 211 2 228 211.00 17.00 3 236 212.70 23.30 4 241 215.03 25.97 5 242 217.63 24.37 6 227 220.06 6.94 7 217 220.76 -3.76 8 203 220.38 -17.38