Question: Solve and explain how to enter in Excel Forecasting Models for Stationary Time Series 1. (40 points) The Excel file Closing Stock Prices provides data


Forecasting Models for Stationary Time Series 1. (40 points) The Excel file Closing Stock Prices provides data for four stocks and the Dow Jones Industrial Average over a one-month period. a. Develop a spreadsheet model for forecasting Dow Jones Industrial Average prices using a simple two-period and three-period moving average. Compute MAD to determine which model is better? b. Develop a spreadsheet model for forecasting Dow Jones Industrial Average prices using simple exponential smoothing with a smoothing constant of 0.1 and 0.5 . Compute MAD to determine which model is better? Closing Stock Prices
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To solve this problem in Excel follow these steps a TwoPeriod and ThreePeriod Moving Average 1 TwoPe... View full answer
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