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.

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YEAR DJ IA | YEAR DJIA 8,342 10,022 10.791 11502 9,213 7908 6448 5,117 3,834 3,754 2013 2012 2011 13,104 2.392 11,577 2003 2002 2001 2010 10431 2000 8,772 13,262 12.460 10,718 10,784 10.453 1999 1998 1997 1996 1995 1994 2006 2004