# Question: Refer to the DJIA data in Problem 5 39 In

Refer to the DJIA data in Problem 5- 39.

In Problem 5-39, The following table provides the Dow Jones Industrial Average (DJIA) opening index value on the first working day of 1994–2013: Develop a trend line and use it to predict the opening DJIA index value for years 2014, 2015, and 2016. Find the MSE for this model.

(a) Use an exponential smoothing model with a smoothing constant of 0.4 to predict the opening DJIA index value for 2014. Find the MSE for this.

(b) Use QM for Windows or Excel and find the smoothing constant that would provide the lowestMSE.

In Problem 5-39, The following table provides the Dow Jones Industrial Average (DJIA) opening index value on the first working day of 1994–2013: Develop a trend line and use it to predict the opening DJIA index value for years 2014, 2015, and 2016. Find the MSE for this model.

(a) Use an exponential smoothing model with a smoothing constant of 0.4 to predict the opening DJIA index value for 2014. Find the MSE for this.

(b) Use QM for Windows or Excel and find the smoothing constant that would provide the lowestMSE.

## Relevant Questions

For the data in Problem 5-42, develop an exponential smoothing model with a smoothing constant of 0.3. Using the MSE, compare this with the model in Problem 5-42.In Problem 5-42, The following table gives the average monthly ...Consider the Emarpy Appliance situation in Problem 6-56. If Richard Feehan wants to minimize the total annual inventory cost, how many refrigerators should be produced in each production run? How much would this save the ...1. Develop a schedule for hiring new employees. What is the total cost of this schedule? 2. Discuss any limitations that exist for this solution.3. How would the schedule change if the attrition rate could be lowered to 3% ...The Laurenster Corporation has determined the client will pay them a $ 10,000 bonus if they complete the project in Problem 11-33 in 14 weeks or less. In Problem 11-33, The Laurenster Corporation needs to perform the ...Refer to the data in Solved Problem 13-1, which deals with Higgins Plumbing and Heating. Higgins has now collected 100 weeks of data and finds the following distribution for sales: Hot Water Number of ...Post your question