5-43 Refer to the DJIA data in Problem 5-41. a) 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 to find the smoothing constant that would provide the lowest MSE.
5-43 Refer to the DJIA data in Problem 5-41. a) 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 to find the smoothing constant that would provide the lowest MSE.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter4: Linear Programming Models
Section: Chapter Questions
Problem 91P
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Question
5-43 Refer to the DJIA data in Problem 5-41.
a) 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 to find the smoothing constant that would provide the lowest MSE.
Transcribed Image Text:YEAR
DJIA
YEAR
DJIA
2013
13,104
2003
8,342
2012
12,392
2002
10,022
2011
11,577
2001
10,791
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
3,834
2004
10,453
1994
3,754
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