Back to Assignment Attempts Average / 3 5. Exercise 5.5 A firm experienced the demand shown in the following table. Fill in the table by preparing forecasts based on a five-year moving average, a three-year moving average, and exponential smoothing ( w = 0.9 and w=0.3 ). (Note: The exponential smoothing forecasts may be begun by assuming Yt+1=Yt. ) The following table shows the square errors, (YtYt1)2, for forecasts from 2005 through 2009. Homework (Ch 05) The following table shows the square errors, (YtYt1)2, for forecasts from 2005 through 2009. Fill the table by calculating the root mean square error (RMSE) for each of the methods. Based on the RMSE criterion, which of the forecasting methods is the most accurate? Exponential smoothing (w=0.9) Exponential smoothing (w=0.3) Three-year moving average Five-year moving average