This passge below require critical analysis and breakdown
In: Economics
This passge below require critical analysis and breakdown
Moving averages, weighted moving averages, and exponential smoothing methods are three forecasting methods that are appropriate for a time series with a horizontal pattern. These methods are easy to use and generally provide a high level of accuracy for short-range forecasts, such as a forecast for the next time period. “The moving averages method uses the average of the most recent k data values in the time series as the forecast for the next period (Anderson, Sweeney, Williams, Camm, Cochran, Fry, & Ohlmann, p.211). “Weighted moving averages involve selecting a different weight for each data value in the moving average and then computing a weighted average of the most recent k values as the forecast”(Anderson, Sweeney, Williams, Camm, Cochran, Fry, & Ohlmann, P. 214). “Exponential smoothing also uses a weighted average of past time series values as a forecast; it is a special case of the weighted moving averages method in which we select only one weight—the weight for the most recent observation. The weights for the other data values are computed automatically and become smaller as the observations move farther into the past”(Anderson, Sweeney, Williams, Camm, Cochran, Fry, & Ohlmann, p. 215).
There are several measures of forecast accuracy. These measures are used to determine how well a particular forecasting method is able to reproduce the time series data that are already available. The key concept associated with measuring forecast accuracy is forecast error. “The mean absolute error, denoted MAE, is a measure of forecast accuracy that avoids the problem of positive and negative forecast errors offsetting one another”(Anderson, Sweeney, Williams, Camm, Cochran, Fry, & Ohlmann, p. 207). “Another measure that avoids the problem of positive and negative errors offsetting each other is obtained by computing the average of the squared forecast errors” and is referred to as the mean squared error (Anderson, Sweeney, Williams, Camm, Cochran, Fry, & Ohlmann, p. 208). These measures of forecast accuracy simply measure how well the forecasting method is able to forecast historical values of the time series. Measures of forecast accuracy are important factors in comparing different forecasting methods. Obviously the better the forecast accuracy is, the better the prediction will be and the organization can plan accordingly. A forecast is not beneficial if it is not accurate and these methods and measures allow us to get the best possible forecast.
In: Economics
Is it possible for a game with two players, two choices, and no mixed strategies to have more than two Nash equilibria?
In: Economics
In: Economics
Goods 1 and 2 are perfect complements for Kane. He always consumes these two goods in the ratio of 2 units of good 2 for every unit of good 1. The price of good 1 is $1.00, and the price of good 2 is $4.00. Kane has $936.00 to spend. part 1) The substitution effect of a change in the price of good 2 from $4.00 to $6.00 will reduce the demand for good 2 by _______ units. part 2) The income effect of the increase in the price of good 2 from $4.00 to $6.00 will cause demand for good 2 to fall by ________ units..
In: Economics
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In: Economics
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In: Economics
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In: Economics
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In: Economics
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In: Economics
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i. No action is taken
ii. Suppose that a monetary policy action is taken to overcome the resulting problem.
In: Economics
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In: Economics
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In: Economics
QUESTION 13
SECTION 1
Because deflation is so costly, some have argued that setting an
inflation target at 2 percent is too low and it should be set
higher, to 3 percent, especially in the economic environment of
2007–2010.
In: Economics
Discuss a specific market in which sellers have been able to establish brand loyalty through product differentiation. How are firms in this market impacted by COVID-19? Do you believe that government should focus financial assistance on business owners, families, or both during these difficult times? Explain it in between 100 to 200 words.
In: Economics