Question: The U . S . monthly inflation rate for 2 0 1 6 is shown below: table [ [ MONTH , INFLATION ( %

The U.S. monthly inflation rate for 2016 is shown below:
\table[[MONTH,INFLATION (%),MONTH,INFLATION (%)],[January,1.4,July,0.8],[February,1.0,August,1.1],[March,0.9,September,1.5],[April,1.1,October,1.6],[May,1.0,November,1.7],[June,1.0,December,2.1]]
a. Compute the inflation rate for January 2017 using the exponential smoothing forecast using a=0.3 and then using 0.6. Assume that the forecast for January 2016 is 1.4. Do not round intenmediate calculations. Round your answers to three decimal places.
Forecast (January 2017,a=0.3): %
Forecast (January 2017,a=0.6): %
b. What is the MAD for the forecasts generated using exponential smoothing method? Use only the months from March to December. Do not round intermediate calculations. Round your answers to three decimal places.
 The U.S. monthly inflation rate for 2016 is shown below: \table[[MONTH,INFLATION

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 General Management Questions!