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Consider the following time series data: Week 1 2 3 4 5 Value 14 13 15 15 14 Wha

ID: 3157432 • Letter: C

Question

Consider the following time series data:

Week       1        2         3         4         5  

Value      14      13      15       15       14

What is the forecast for week 4 using the three-week moving average?

What is the absoluter error of the forecast for week 4 computed by the use of the three-week moving average?

What is the forecast for week 4 using the weighted three-week moving average with a weight of 3/6 to the most recent observation, 2/6 to the second most recent observation, and 1/6 to the third most recent observation?

What is absolute error of the forecast for week 4 using the weighted three-week moving average with a weight of 3/6 to the most recent observation, 2/6 to the second most recent observation, and 1/6 to the third most recent observation?

What is the forecast for week 4 using the exponential smoothing method with a smoothing constant (alpha) of 0.5?                                                                                                       

Explanation / Answer

so the forecast is 14.5

absoluteerror is 15-14.5=0.5

so the estimate is 14.25.

week value 3 yearly moving total moving average 1 14 2 13 42 14 3 15 43 14.33333 4 15 44 14.66667 5 14