Question

1. The values of Alabama building contracts (in millions of dollars) for a 12-month period follow.

   250  340  230  250  280  310  210  320  250  300  240  230

   1. Choose the correct time series plot.
      

      (i)	Value (Millions of dollars) Month (t)
      (ii)	Value (Millions of dollars) Month (t)
      (iii)	Value (Millions of dollars) Month (t)
      (iv)	Value (Millions of dollars) Month (t)

      • Plot (i)
      • Plot (ii)
      • Plot (iii)
      • Plot (iv)
      
      
      What type of pattern exists in the data?
      
      
      • Horizontal Pattern
      • Trend Pattern
      
      
   2. Compare a three-month moving average forecast with an exponential smoothing forecast. Use = 0.2. Which provides the better forecasts based on MSE? Do not round your intermediate calculations and round your final answers to two decimal places.
      

      	Moving average	Exponential smoothing
      MSE

      • Moving average
      • Exponential smoothing
   3. What is the forecast for the next month? Round your answer to the nearest whole number.
      
      _____________ millions of dollars?

Answer 1