Question: Forecasting future commodity prices can be important for many production operations. One such commodity is the price of aluminum ($US per metric ton). . First,

Forecasting future commodity prices can be important for many production operations. One such commodity is the price of aluminum ($US per metric ton). . First, create a one period forecast based upon a three month moving average. Second, create a one period forecast based upon exponential smoothing (using a smoothing weight of 0.95). Compare the two forecasts based upon the Mean Absolute Deviation (MAD) measure of accuracy. Interpret your results.

The Data:

Month	Price
Jan-18	2,209.73
Feb-18	2,181.79
Mar-18	2,069.24
Apr-18	2,254.69
May-18	2,299.67
Jun-18	2,237.62
Jul-18	2,082.24
Aug-18	2,051.51
Sep-18	2,026.46
Oct-18	2,029.86
Nov-18	1,938.51
Dec-18	1,920.38
Jan-19	1,853.72
Feb-19	1,862.99

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Corporate Finance Questions!

Use the attached "words.txt" file to store the words along with their ranks in an AVL tree. Then provide the user the option to search for any word. If the word exists the program displays the rank...

A researcher wanted to find out if there was difference between older movie goers and younger movie goers with respect to their estimates of a successful actors income. The researcher first...

KYC's stock price can go up by 15 percent every year, or down by 10 percent. Both outcomes are equally likely. The risk free rate is 5 percent, and the current stock price of KYC is 100. (a) Price a...

The purpose of this assignment is to give you an opportunity to create a forecast based on data and interpret the results. You will also gain more practice with Minitab. Forecasting future commodity...

What factors should be considered in deciding whether the cost of capital for a foreign affiliateshould be higher, lower, or the same as the cost of capital for a comparable domestic operation?...

Initial Thread: Read Case 4: "Campbell: How to Keep Soup Simmering", found in the back of your Strategic Management textbook (page C91). Using your textbook content, industry experience, and the case...

answer problem 1 2 and 3 **UPDATED QUESTIONS*** 1) what discourses or information, if any, does the company include about their products in inventory. What key details are important to understanding...

1. What internal resources does Campbell have that may give it a competitive advantage? 2. What do you think Campbell should do to counter the competition and remain in the top of the soup business?...

Answer the following questions using the annual report of Colgate in Appendix A. a. Who is responsible for the preparation and integrity of Colgate?s financial statements and notes? Where is this...

Instructions - Answer all the questions all calculations must be clearly indicated No essays - write factual and structured Maximum 10 pages You are not allowed to do any updates on the Case...

how are proceeds from sale of bonds with share warrants shown in the statement of cash flows? a. partly operating partly financing b. investing only c. partly investing partly financing d. financing...

How do you find the IP address of your Linux machine using the command line? 2. (10 pt) Display your current directory in a terminal

A company uses a two-variance analysis for overhead variances, controllable and volume. The volume variance is the difference between the factory overhead applied at standard and: a. Total factory...

2. A test has two portions: verbal and math. The scores for each portion are positively correlated with a correlation coefficient of 0.55. A scatter diagram of the scores is football shaped. Scores...

This module aims to teach you to break down many engineering or everyday life processes into smaller problems. Models can then be created based on conservation of mass, momentum and energy (heat)....

You are performing an earned value analysis (EVM) on your 28-week project. The project was scheduled to be 50% complete at this time. You have finished 14 of the 32 deliverables (all of equal value)....

Which one of the following statements about options is FALSE? a. Most listed options are traded in the OTC market b. Listed stock options are written against securities which are widely held and...

Economic feasibility is an important guideline in designing cost accounting systems. Do you agree? Explain.

Initial Post: Search online for different resources that you could use or suggest to someone else who is experiencing different types of conflict. Cite the website or source. Answer the following: #1...

CafÃ©-Nervosa.com, based in Seattle, Washington, is a rapidly growing family business that offers a line of distinctive coffee products to local and regional coffee shops. Assume founder...

In Africa, the continent where the polio epidemic has been most difficult to control, international relief efforts aimed at disease eradication often work against a backdrop of civil unrest and war....

The Worker Adjustment and Retraining Notification Act (WARN) requires employers with 100 or more employees to provide notification 60 calendar days in advance of plant closings and mass layoffs....

Consider the table below showing the supply schedules for three competitive firms, each producing honey. These three firms make up the entire industry. a. Compute the total industry supply at each...

When selling its famous Levi 501 jeans, Levi Straus price discriminates between the European and American markets, selling the product at a higher price in Europe than in the United States. The...

Consider the market for corn. Suppose this is a competitive industry, made up of many price-taking farmers. We begin in a situation where market price is p0, industry output is Q0, and the typical...