Problem 1: Time Series Forecasting Suppose that I have the following stock prices for the last seven days. a) Calculate 3 Day Moving Average. b) What is the Average Error and Mean Absolute Deviation for 3 Day Moving Average? Does this pass the Bias Test? c) Suppose that I told you that the Linear Regression for this data was Stock Price =15.10+ .06*Day. Calculate predictions for each day: is this "better" than 3MA forecast? Explain why Linear Regression may be a good forecasting method for this data. Note: for the test, I may add additional information such as "Tell me what the 6MA would be for Day 7 " or "What would the Trend Factor be for Day 3 ?" d) Calculate the Simple Exponential Smoothing for Days 1-7 if alpha = 3 . Problem 1: Time Series Forecasting Suppose that I have the following stock prices for the last seven days. a) Calculate 3 Day Moving Average. b) What is the Average Error and Mean Absolute Deviation for 3 Day Moving Average? Does this pass the Bias Test? c) Suppose that I told you that the Linear Regression for this data was Stock Price =15.10+ .06*Day. Calculate predictions for each day: is this "better" than 3MA forecast? Explain why Linear Regression may be a good forecasting method for this data. Note: for the test, I may add additional information such as "Tell me what the 6MA would be for Day 7 " or "What would the Trend Factor be for Day 3 ?" d) Calculate the Simple Exponential Smoothing for Days 1-7 if alpha = 3