Question: Refer to the DJIA data in Problem 5-41. (a) Use an exponential smoothing model with a smoothing constant of 0.4 to predict the opening DJIA

Refer to the DJIA data in Problem 5-41.

(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 to find the smoothing constant that would provide the lowest MSE.

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