Exhibit 8 1 10 2 12 3 15 4 12 5 16 6 18 According to exhibit

Exhibit 8

1

10

2

12

3

15

4

12

5

16

6

18

According to exhibit 8,

Develop a three-week moving average and an exponential smoothing (use alpha=.8) to forecats week 7. Compare the two methods. Which appears to provide more accurate forecasts based on MSE?

Solution

The above sis 3 yearly moving averages.

The below is exponential smooting method

The exponential smoothing method is better.