Question: Completely work the problems in Excel, conclusions and answers may be typed in Excel. Moving averages are often used to identify movements in stock prices.


Completely work the problems in Excel, conclusions and answers may be typed in Excel.
Moving averages are often used to identify movements in stock prices. Monthly closing prices (dollars per share) for Alphabet (Google) Inc. (NASDAQ: GOOG) from February 1, 2021 through January 1, 2022 are located in the file: Google (Sp22) (a) Develop a two-month moving average forecast for the monthly closing price of Google for February 2022. (b) Rework part (a) using the weighted moving average technique to smooth the time series. Use the following weighting system to create the forecast: Period/Month Most Recent Next Most Recent Weights 2-month MA 0.7 0.3 (c) Use 1 = 0.7 to compute the exponential smoothing values for the time series. What is the forecast for February 2022? (d) Compute the three measures of forecast accuracy (MAE, MSE and MAPE) for each of the three forecast methods in parts (a), (b) and (c). Which smoothing method provides the better forecast? Explain. Alphabet Inc. (Google) Date 2/1/2021 3/1/2021 4/1/2021 5/1/2021 6/1/2021 7/1/2021 8/1/2021 9/1/2021 10/1/2021 11/1/2021 12/1/2021 1/1/2022 Closing Price $1,339.33 $1,162.81 $1,348.66 $1,428.92 $1,413.61 $1,482.96 $1,634.18 $1,469.60 $1,621.01 $1,760.74 $1,751.88 $1,787.25
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