Question: Compare the three-month moving average forecast with the exponential smoothing forecast using =0.2. (Round your answers to two decimal places.) Which provides more accurate forecasts

Compare the three-month moving average forecast with the exponential smoothing forecast using =0.2. (Round your answers to two decimal places.) Which provides more accurate forecasts based on MSE? Exponential smoothing is more accurate, since its MSE calculated over all of the forecasted months is smaller than the MSE using the three-month moving average. The three-month moving average is more accurate, since its MSE is smaller than the MSE for exponential smoothing calculated over all of the forecasted months. Exponential smoothing is more accurate, since its MSE calculated over all of the forecasted months is larger than the MSE using the three-month moving average. The three-month moving average is more accurate, since its MSE is larger than the MSE for exponential smoothing calculated over all of the forecasted months. 2) Using the more accurate approach from part (b), what is the forecast (in millions of dollars) for the next month? (Round your answer to the nearest million dollars.) $ million
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
