Homework Sourse110 a construct a time series plot what type of pattern exis
110
a. construct a time series plot. what type of pattern exists in the data?
b. use alpha=.30 to compute exponential smoothing values for the time series. what is the forecast for period 13?
c. find the linear regression equation and use it to compute a forecast for periods 1-13.
d. interpret b1. what does b1 tell you about sales?
e. calculate MSE for both forecasting methods. which method works better? why?
| Month | Sales |
| 1 | 105 |
| 2 | 135 |
| 3 | 120 |
| 4 | 105 |
| 5 | 90 |
| 6 | 120 |
| 7 | 145 |
| 8 | 140 |
| 9 | 100 |
| 10 | 80 |
| 11 | 100 |
| 12 | 110 |
Solution
