USING EXCELL The following table provides Dow Jones Industri

USING EXCELL.

The following table provides Dow Jones Industrial Average (DJIA) opening index value on the first working day of 1994-2013.

USING EXCELL. The following table provides Dow Jones Industrial Average (DJIA) opening index value on the first working day of 1994-2013.

a) Use a three years moving average forecasting model to forecast for the opening index value of DJIA. (10 points)

b) Using smoothing constants of 0.6 and 0.9 . Develop forecasts for the opening index value of DJIA.
Use $4,000 as an initial forecast for the year of 1994. (10 points)
c) Which smoothing constant gives the most accurate forecast? (10 points)			Total : 50 points
					Your Score:
d) Develop a trend line ( trend projection model/regression model using EXCEL)
and use it to predict the opening index value for years 2014,2015 and 2016. (10 points)

e) Compute RSFE and Tracing Signals. Are they within acceptable limits? (10 points)

YEAR	DJIA	YEAR	DJIA
2013	13,104	2003	8,342	* Use for each question separate spreadsheet
2012	12,392	2002	10,022
2011	11,577	2001	10,791	* instead of years use the index 1,2,3…
2010	10,431	2000	11,502
2009	8,772	1999	9,213
2008	13,262	1998	7,908
2007	12,460	1997	6,448
2006	10,718	1996	5,117
2005	10,784	1995	3,843
2004	10,453	1994	3,754

please find the answer of a) b) c)