The town of Hillside has a surface reservoir that supplies water to the homes in the town’s central residential district. A committee of residents is concerned about the system’s capacity and wants to project future use. The town’s water department has promised to develop its best forecast of water use in the next two years. The department has collected quarterly data on water use (in millions of gallons) over the
the past decade, as shown in the following table:

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Year Q1 Q2 03 04 1 55 34 39 65 59 54 46 46 41 38 33 65 37 36 35 51 5 34 21 23 60 6 39 27 23 47 7 42 25 21 55 8. 23 22 25 40 28 26 21 53 10 30 25 21 54 a Use the Holt-Winters method to estimate the quarterly water use for the coming eight quarters. Use smoothing parameters of a = 0.3, B = 0.4, and y = 0.5 b. For the forecasting problem in (a), which value of a achieves the minimpum value of MSE, holding the other smoothing parameters constant? -234 Year Q1 Q2 03 04 1 55 34 39 65 59 54 46 46 41 38 33 65 37 36 35 51 5 34 21 23 60 6 39 27 23 47 7 42 25 21 55 8. 23 22 25 40 28 26 21 53 10 30 25 21 54 a Use the Holt-Winters method to estimate the quarterly water use for the coming eight quarters. Use smoothing parameters of a = 0.3, B = 0.4, and y = 0.5 b. For the forecasting problem in (a), which value of a achieves the minimpum value of MSE, holding the other smoothing parameters constant? -234

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The Water Department operates under the direction of the Mayor and the Water Pollution Control Authority WPCA The Director of the Department is primar... View the full answer