Question: Reconsider the time series data shown in Table E4.1. a. Use simple exponential smoothing with the optimum value of A to smooth the first 40
Reconsider the time series data shown in Table E4.1.
a. Use simple exponential smoothing with the optimum value of A to smooth the first 40 time periods of this data (you can find the optimum value from Minitab). How well does this smoothing procedure work? Compare the results with those obtained in Exercise 4.1.
b. Make one-step-ahead forecasts of the last 10 observations. Determine the forecast errors. Compare these forecast errors with those from Exercise
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