The Victory Plus Mutual Fund of growth stocks has had the following average monthly price forthe past 10 months:Month Fund Price1 62.72 63.93 68.04 66.45 67.26 65.87 68.28 69.39 67.210 70.1Compute the exponentially smoothed forecast with a = .40 the adjusted exponential smoothing forecastwith a = .40 and B=30 and the linear trend line forecast. Compare the accuracy of the threeforecasts, using cumulative error and MAD, and indicate which forecast appears to be most accurate.
The Victory Plus Mutual Fund of growth stocks has had the following average monthly price forthe past 10 months:Month Fund Price1 62.72 63.93 68.04 66.45 67.26 65.87 68.28 69.39 67.210 70.1Compute the exponentially smoothed forecast with a = .40 the adjusted exponential smoothing forecastwith a = .40 and B=30 and the linear trend line forecast. Compare the accuracy of the threeforecasts, using cumulative error and MAD, and indicate which forecast appears to be most accurate.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter13: Regression And Forecasting Models
Section13.7: Exponential Smoothing Models
Problem 26P: The file P13_26.xlsx contains the monthly number of airline tickets sold by the CareFree Travel...
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The Victory Plus Mutual Fund of growth stocks has had the following average monthly price for
the past 10 months:
Month Fund Price
1 62.7
2 63.9
3 68.0
4 66.4
5 67.2
6 65.8
7 68.2
8 69.3
9 67.2
10 70.1
Compute the exponentially smoothed
with a = .40 and B=30 and the linear trend line forecast. Compare the accuracy of the three
forecasts, using cumulative error and MAD, and indicate which forecast appears to be most accurate.
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