Question

The accompanying data set provides the closing prices for four stocks and the stock exchange over 12 days:

Date	A	B	C	D	Stock Exchange
9/3/10	127.37	18.34	21.03	15.51	10432.45
9/7/10	127.15	18.18	20.44	15.51	10334.67
9/8/10	124.92	17.88	20.57	15.82	10468.41
9/9/10	127.35	17.95	20.52	16.02	10498.61
9/10/10	128.37	17.82	20.42	15.98	10563.84
9/13/10	128.36	18.64	21.16	16.21	10616.07
9/14/10	128.61	18.83	21.29	16.22	10565.83
9/15/10	130.17	18.79	21.69	16.25	10627.97
9/16/10	130.34	19.16	21.76	16.36	10595.39
9/17/10	129.37	18.82	21.69	16.26	10517.99
9/20/10	130.97	19.12	21.75	16.41	10661.11
9/21/10	131.16	19.02	21.55	16.57	10687.95

Using Excel's Data Analysis Exponential Smoothing tool, forecast each of the stock prices using simple exponential smoothing with a smoothing constant of 0.3.

For example, help me to understand how to complete the exponential smoothing forecast model for Stock A.

Date Forecast A

9/3/2010 ____

9/7/2010 ____

9/8/2010 ____

9/9/2010 ____

9/10/2010 ____

9/13/2010 ____

9/14/2010 ____

9/15/2010 ____

9/16/2010 ____

9/17/2010 ____

9/20/2010 ____

9/21/2010 ____

Answer 1

### exponential smoothing for A, B, C, D, stock exchange DATA > Data Analysis > Exponetial smoothing > first input choose variable > damping factor is 0.3 Date forecast A forecast B Forecast C Forecast D Stock Exchange 09/03/2010 #N/A #N/A #N/A #N/A #N/A 09/07/2010 127.37 18.34 21.03 15.51 10432.45 09/08/2010 127.216 18.228 20.617 15.51 10364.025 09/09/2010 125.6088 17.9844 20.5841 1 5.727 10437.0945 09/10/2010 126.82764 17.96032 20.53923 15.9321 10480.15535 9/13/10 127.907292 17.862096 20.455769 15.96563 10538.73461 9/14/10 128.2241876 18.4066288 20.948730716.136689 10592.86938 9/15/10 128.4942563 18.70298864 21.1876192 16.1950067 10573.94181 9/16/10 129.6672769 18.76389659 21.5392858 16.23350210611.76154 9/17/10 130.1381831 19.04116898 21.6937857 16.3220506 10600.30146 9/20/10 129.6004549 18.88635069 21.6911357 16.2786152 10542.68344 9/21/10 130.5591365 19.04990521 21.7323407 16.3705846 10625.58203