Question

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

240 360 240 270 280 310 220 320 240 320 240 240

b. Compare the three-month moving average approach with the exponential smoothing forecast using a = .2 (to 2 decimals).

MSE (3-Month)	______
MSE (a = .2)	______

Which provides more accurate forecasts based on MSE?

3- month moving average or exponential smoothing approach a = .2

Using only the errors for months 4 to 12, the MSE for exponential smoothing is:

MSE (a = .2)

______

(to 2 decimals)

Which provides more accurate forecasts based on MSE?

3- month moving average or exponential smoothing approach a = .2

c. What is the forecast for the next month (to the nearest whole number)?

Answer 1