# Question: Target Corp operates big box stores that sell everyday essentials

Target Corp. operates “big box” stores that sell everyday essentials and fashionable differentiated merchandise. It also operates an online business at target.com. Target’s reported gross earnings per share for the years 2003–2006 are given here.

a) Find a prediction for 2007 based on a 3- year moving average and one for a 4-year moving average.

b) Find a prediction for 2007 based on an exponential smoothing model with a = 0.8.

c) Earnings per share in 2007 were, in fact, $ 3.18. Compute the absolute percentage error for each prediction.

a) Find a prediction for 2007 based on a 3- year moving average and one for a 4-year moving average.

b) Find a prediction for 2007 based on an exponential smoothing model with a = 0.8.

c) Earnings per share in 2007 were, in fact, $ 3.18. Compute the absolute percentage error for each prediction.

## Relevant Questions

Suppose an autoregressive model is used for data in which quarterly sales in 2013 were: 1.9, 1.7, 2.2, and 2.3 ($ Billion). a) If a first-order autoregressive model is developed with estimated parameters of b0 = 0.100 and b1 ...In Exercise 30 we looked at the weekly average retail price (cents per gallon) of regular gas nationwide from 2011 through June 2013. Here’s the time series plot again: a) What components can you see in this plot? Here’s ...Much of the public and private industry in Hawaii depends on tourism. The following time series plot shows the number of domestic visitors to Hawaii by air from the rest of the United States per month from January 2002 ...Using the data from Exercise 42, develop and compare the following models. In exercise a) Fit an appropriate autoregressive model by testing for the significance of each autoregressive term. b) Obtain a forecast for the ...For the Apple prices smoothed in Exercise 5, the actual value for January 2007 was 1.034. Find the absolute percentage error of your forecast.Post your question