Questions 7 through 10 refer to the data sheet named housing_price representing monthly average housing price (in $1,000s) in the DFW metropolitan area during 2000-2003.

		Time	Housing
Year	Month	Period	Price ($1000)
1	1	1	201.12
	2	2	213
	3	3	213.6
	4	4	211.32
	5	5	215.64
	6	6	222.96
	7	7	219.24
	8	8	218.76
	9	9	213.24
	10	10	201.45
	11	11	207.24
	12	12	214.56
2	1	13	210.84
	2	14	213.84
	3	15	218.4
	4	16	219.72
	5	17	229.8
	6	18	221.88
	7	19	225.72
	8	20	222
	9	21	210.96
	10	22	214.92
	11	23	214.92
	12	24	224.76
3	1	25	212.76
	2	26	220.2
	3	27	219.36
	4	28	221.4
	5	29	227.88
	6	30	227.88
	7	31	233.28
	8	32	229.32
	9	33	231.12
	10	34	224.76
	11	35	228.96
	12	36	232.2

7. Use the additive seasonal technique for stationary data to model the data. Use Solver to determine the optimal values of and .

a. What are the optimal values of and ?

b. Prepare a line graph comparing the predictions from this method against the original data.

c. What are the forecasts for each of the next 6 months using this technique?

8. Use the multiplicative seasonal technique for stationary data to model the data. Use Solver to determine the optimal values of and .

a. What are the optimal values of and ?

b. Prepare a line graph comparing the predictions from this method against the original data.

c. What are the forecasts for each of the next 6 months using this technique?

9. Use Holt-Winters additive method to create a seasonal model that minimizes the MSE for the data set. Use Solver to determine the optimal values of , , and .

a. What are the optimal values of , , and ?

b. Prepare a line graph comparing the predictions from this method against the original data.

c. What are the forecasts for each of the next 6 months using this technique?

10. Use Holt-Winters multiplicative method to create a seasonal model that minimizes the MSE for the data set. Use Solver to determine the optimal values of , , and .

a. What are the optimal values of , , and ?

b. Prepare a line graph comparing the predictions from this method against the original data.

c. What are the forecasts for each of the next 6 months using this technique?