Question: Compare the three-week moving average forecast with the exponential smoothing forecast using = 0.2. Which appears to provide the better forecast based on MSE? Explain.
Compare the three-week moving average forecast with the exponential smoothing forecast using = 0.2. Which appears to provide the better forecast based on MSE? Explain. The three-week moving average provides a better forecast since it has a larger MSE than the smoothing approach using = 0.2. The exponential smoothing using = 0.2 provides a better forecast since it has a larger MSE than the three-week moving average approach. The exponential smoothing using = 0.2 provides a better forecast since it has a smaller MSE than the three-week moving average approach. The three-week moving average provides a better forecast since it has a smaller MSE than the smoothing approach using = 0.2
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