This the same data from the Starbucks example. Again, we want to make a forecast for...

  

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This the same data from the Starbucks example. Again, we want to make a forecast for the 19th week. This time, we will try use MSE to choose the best forecasting method. You are already given the work for 3-week moving average forecast and the exponential smoothing method with alpha= 0.2. Format your answers rounded to one decimal digit, e.g., 123.4. Find the forecast and the MSE using: (a) 2-week moving average, (b) 4-week moving average, (c) Out of the three moving average methods, 2-week, 3-week, and 4-week, which gives the best forecast based on the MSE? (d) Use Excel Solver to find the alpha for exponential smoothing that minimizes the MSE. (e) Which forecast is better between (c) and (d) based on MSE? This the same data from the Starbucks example. Again, we want to make a forecast for the 19th week. This time, we will try use MSE to choose the best forecasting method. You are already given the work for 3-week moving average forecast and the exponential smoothing method with alpha= 0.2. Format your answers rounded to one decimal digit, e.g., 123.4. Find the forecast and the MSE using: (a) 2-week moving average, (b) 4-week moving average, (c) Out of the three moving average methods, 2-week, 3-week, and 4-week, which gives the best forecast based on the MSE? (d) Use Excel Solver to find the alpha for exponential smoothing that minimizes the MSE. (e) Which forecast is better between (c) and (d) based on MSE?

Answer rating: 100% (QA)

To address each part of the question lets start by calculating the 2week and 4week moving averages and their corresponding Mean Squared Errors MSE For ... View the full answer