Question

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.


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  • CreatedMay 15, 2015
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