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Stock Performance  Decade Performance(%) 1830s 2.8 1840s 12.8 1850s 6.6 1860s 12.5 1870s 7.5 1880s 6.0 1890s 5.5 1900s 10.9 1910s 2.2 1920s 13.3 1930s -2.2 1940s 9.6 1950s 18.2 1960s 8.3 1970s 6.6 1980s 16.6 1990s 17.6 2000s -0.5 DO IN EXCEL  How have stocks performed in the past? The data in StockPerformance shows the performance of a broad measure of stock performance (by percentage) for each decade from the 1830s through the 2000s. a. Plot the time series. b. Fit a three-year moving average to the data and plot the results. c. Using a smoothing coefficient of W = 0.50, exponentially smooth the series and plot the results. d. What is your exponentially smoothed forecast for the 2010s? e. Repeat c and d, using W = 0.25. f. Compare the results of c and e, that is, the results from using the different weights. Which of the two weights gives a higher forecast and which of the two weights is better for forecasting? g. What conclusions can you reach about how stocks have performed in the past? **You may combine your three plots for parts b and c (MA (3), W=0.50 and W=0.25) for easier comparison**

Stock Performance  Decade Performance(%) 1830s 2.8 1840s 12.8 1850s 6.6 1860s 12.5 1870s 7.5 1880s 6.0 1890s 5.5 1900s 10.9 1910s 2.2 1920s 13.3 1930s -2.2 1940s 9.6 1950s 18.2 1960s 8.3 1970s 6.6 1980s 16.6 1990s 17.6 2000s -0.5 DO IN EXCEL  How have stocks performed in the past? The data in StockPerformance shows the performance of a broad measure of stock performance (by percentage) for each decade from the 1830s through the 2000s. a. Plot the time series. b. Fit a three-year moving average to the data and plot the results. c. Using a smoothing coefficient of W = 0.50, exponentially smooth the series and plot the results. d. What is your exponentially smoothed forecast for the 2010s? e. Repeat c and d, using W = 0.25. f. Compare the results of c and e, that is, the results from using the different weights. Which of the two weights gives a higher forecast and which of the two weights is better for forecasting? g. What conclusions can you reach about how stocks have performed in the past? **You may combine your three plots for parts b and c (MA (3), W=0.50 and W=0.25) for easier comparison**

Functions and Change: A Modeling Approach to College Algebra (MindTap Course List)
Functions and Change: A Modeling Approach to College Algebra (MindTap Course List)
6th Edition
ISBN:9781337111348
Author:Bruce Crauder, Benny Evans, Alan Noell
Publisher:Bruce Crauder, Benny Evans, Alan Noell
Chapter5: A Survey Of Other Common Functions
Section5.3: Modeling Data With Power Functions
Problem 6E: Urban Travel Times Population of cities and driving times are related, as shown in the accompanying...
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Stock Performance 

Decade Performance(%)
1830s 2.8
1840s 12.8
1850s 6.6
1860s 12.5
1870s 7.5
1880s 6.0
1890s 5.5
1900s 10.9
1910s 2.2
1920s 13.3
1930s -2.2
1940s 9.6
1950s 18.2
1960s 8.3
1970s 6.6
1980s 16.6
1990s 17.6
2000s -0.5

DO IN EXCEL 

How have stocks performed in the past? The data in StockPerformance shows the performance of a broad measure of stock performance (by percentage) for each decade from the 1830s through the 2000s.

a. Plot the time series.

b. Fit a three-year moving average to the data and plot the results.

c. Using a smoothing coefficient of W = 0.50, exponentially smooth the series and plot the results.

d. What is your exponentially smoothed forecast for the 2010s?

e. Repeat c and d, using W = 0.25.

f. Compare the results of c and e, that is, the results from using the different weights. Which of the two weights gives a higher forecast and which of the two weights is better for forecasting?

g. What conclusions can you reach about how stocks have performed in the past?

**You may combine your three plots for parts b and c (MA (3), W=0.50 and W=0.25) for easier comparison**

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