Use = 0.2 to compute the exponential smoothing values for the time series. (Round your answers to three decimal places.)

Week	Time Series Value	Forecast
1	25	-
2	14
3	22
4	12
5	20
6	24
7	16

Compute MSE. (Round your answer to two decimal places.)

MSE =

What is the forecast for week 8? (Round your answer to two decimal places.)

Forecast for week 8 =

(d)

Compare the three-week moving average forecast with the exponential smoothing forecast using

= 0.2.

Which appears to provide the better forecast based on MSE?

The exponential smoothing using = 0.2 provides a better forecast since it has a larger MSE than the three-week moving average.

The three-week moving average provides a better forecast since it has a smaller MSE than the exponential smoothing using = 0.2.

The exponential smoothing using = 0.2 provides a better forecast since it has a smaller MSE than the three-week moving average.

The three-week moving average provides a better forecast since it has a larger MSE than the exponential smoothing using = 0.2.

(e)

Use trial and error to find a value of the exponential smoothing coefficient that results in a smaller MSE than what you calculated for = 0.2.

=