Quatitative Analysis for Management 12th Edition I would like to get solution fo
ID: 457760 • Letter: Q
Question
Quatitative Analysis for Management 12th Edition
I would like to get solution for 5.41
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Use an exponential smoothing model with a smoothing constant of 0.4 to predict the opening DJIA index value for 2014. Find the MSE for this. (b) Use QM for Windows or Excel and find the smoothing constant that would provide the lowest MSE. Reference Problem 5-39: The following table provides the Dow Jones Industrial Average (DJIA) opening index value on the first working day of 1994-2013: Develop a trend line and use it to predict the opening DJIA index value for years 2014. 2015, and 2016. Find the MSE for this model.Explanation / Answer
Quantitative analysis is a business or financial analysis technique that seeks to understand behavior by using complex mathematical and statistical modeling, measurement and research. By assigning a numerical value to variables, quantitative analysts try to replicate reality mathematically.
Quantitative analysis can be done for a number of reasons such as measurement, performance evaluation or valuation of a financial instrument. It can also be used to predict real world events such as changes in a share price.
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BREAKING DOWN 'Quantitative Analysis'
In broad terms, quantitative analysis is simply a way of measuring things. Examples of quantitative analysis include everything from simple financial ratios such as earnings per share, to something as complicated as discounted cash flow, or option pricing.
Although quantitative analysis is a powerful tool for evaluating investments, it rarely tells a complete story without the help of its opposite - qualitative analysis. In financial circles, quantitative analysts are affectionately referred to as "quants", "quant jockeys" or "rocket scientists.