Using the DJIA data in Problem 5-39, use exponential smooth with trend adjustment to forecast the opening
Question:
In Problem 5-39, The following table provides the Dow Jones Industrial Average (DJIA) opening index value on the first working day of 19942013: Develop a trend line and use it to predict the opening DJIA index value for years 2014, 2015, and 2016. Find the MSE for thismodel.
Transcribed Image Text:
YEAR DJIA | YFAR DJIA 8,342 2013 2012 2011 13,104 12,392 11,577 2003 2002 022 10,791 11502 9.213 7.908 6.448 5,117 3.834 3.754 2001 2010 10431 2000 2009 2008 2007 2006 2005 8,772 13,262 12.460 10,718 10,784 1999 1998 1997 1996 1995 2004 10,4531994 3.74
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 66% (15 reviews)
Using QM for Windows the forecast is 13401800 and the MSE 2867351 ignoring the firs...View the full answer
Answered By
JAPHETH KOGEI
Hi there. I'm here to assist you to score the highest marks on your assignments and homework. My areas of specialisation are:
Auditing, Financial Accounting, Macroeconomics, Monetary-economics, Business-administration, Advanced-accounting, Corporate Finance, Professional-accounting-ethics, Corporate governance, Financial-risk-analysis, Financial-budgeting, Corporate-social-responsibility, Statistics, Business management, logic, Critical thinking,
So, I look forward to helping you solve your academic problem.
I enjoy teaching and tutoring university and high school students. During my free time, I also read books on motivation, leadership, comedy, emotional intelligence, critical thinking, nature, human nature, innovation, persuasion, performance, negotiations, goals, power, time management, wealth, debates, sales, and finance. Additionally, I am a panellist on an FM radio program on Sunday mornings where we discuss current affairs.
I travel three times a year either to the USA, Europe and around Africa.
As a university student in the USA, I enjoyed interacting with people from different cultures and ethnic groups. Together with friends, we travelled widely in the USA and in Europe (UK, France, Denmark, Germany, Turkey, etc).
So, I look forward to tutoring you. I believe that it will be exciting to meet them.
3.00+
2+ Reviews
10+ Question Solved
Related Book For
Quantitative Analysis for Management
ISBN: 978-0133507331
12th edition
Authors: Barry Render, Ralph M. Stair, Michael E. Hanna, Trevor S. Ha
Question Posted:
Students also viewed these Statistics questions
-
The following table provides the Dow Jones Industrial Average (DJIA) opening index value on the first working day of 1991-2010: Develop a trend line and use it to predict the opening DJIA index value...
-
The following table provides the Dow Jones Industrial Average (DJIA) opening index value on the first working day of 1994-2013. Develop a trend line and use it to predict the opening DJIA index value...
-
The Dow Jones Industrial Average is an index of the prices of only 30 stocks. Consider a much broader measure of the stock market -- the market value of equities (FRED code: MVEONWMVBSNNCB) which...
-
obias is a foreman at a factory that manufactures auto parts. When a health a safety inspector visits the plant, Tobias notices the inspector writing down several major labor and safety violations....
-
Orange-U-Happy is an orange-scented cleaning product that is manufactured in disposable cloth pads. Each box of 100 pads costs $5 to manufacture. The fixed costs for Orange-U-Happy are $40,000. The...
-
A company is analyzing the prices at which its items are sold. Graph the relative frequency histogram for the 600 items summarized in the accompanying relative frequency table. Class Based on Item...
-
Describe the various court rulings involving PPACA.
-
Discuss some of the basic features of an ERP. How do these features distinguish an ERP from an integrated accounting software program?
-
Please show me the Calculation step by step. Thank you Financial Analysis : Facts: $1 US = $1.40 CDN One truckload / container = 1940 cases One truckload / container = 25 standard pallets One pallet...
-
Choose your preferred national, regional, and local news media in each of the groups. Identify the number of articles that criticize business or an employer-related decision. Identify the number of...
-
In using the decomposition method, the forecast based on trend is found using the trend line. How is the seasonal index used to adjust this forecast based on trend?
-
Let the annual demand for an arbitrary commodity be 1,000 units per year and the associated EOQ be 400 units per order. Under this circumstance the number of orders per year would be (D / Q) = 2.5...
-
Suppose the position of an object moving in a straight line is given by s (t) = t 2 + 5 t + 2. Find the instantaneous velocity at each time. t = 1
-
Suppose that a small change in interest rates causes a big change in investment spending. What does that imply about the effectiveness of fiscal policy and monetary policy? Explain.
-
Now that we know how we calculate GDP and we learned how portions of GDP are affected by economic variables, lets have a thought experiment. Imagine your country is in a recession, so GDP is down,...
-
In the theory of application, article of the world's largest that are we learn how the United States went from the largest creditor in the world to the largest daughter. How do you feel? This affects...
-
Consider an economy where we can describe the behaviour of aggregate macroeconomic variables using the monetary model Using the money supply/demand diagram, we want to understand what happens to the...
-
Consider an economy with two countries, China and the United States. China produces nontraded goods and shoes. The United States produces nontraded goods and cars. Both shoes and cars can be traded....
-
Matter can exist as which of the following? (a) As a homogeneous mixture of substances. (b) As a pure substance. (c) As a heterogeneous mixture of substances. (d) As all of the above.
-
Air pollution generated by a steel mill is an example of a) a positive production externality. b) a negative production externality. c) a public good. d) the free-rider problem. State and local taxes...
-
Cardiex is a world-leading manufacturer of implantable defibrillators based in Maastricht (Netherlands). Gustav Lund, Cardiexs senior vice president for production and logistics, is trying to decide...
-
Using the data in Problem 4-10 test to see if there is a statistically significant relationship between sales and TV appearances at the 0.05 level of significance. Use the formulas in this chapter...
-
Using computer software, find the least squares regression line for the data in Problem 4-10. Based on the F test, is there a statistically significant relationship between the demand for drums and...
-
Students in a management science class have just received their grades on the first test. The instructor has provided information about the first test grades in some previous classes as well as the...
-
How does Ozy media differentiate itself from competitor? or how does it build brand identity?
-
Moe Glee's business acquired a group of assets two years ago to help with expansion plans, but Moe would now like to review the use of some of those assets. Moe's close friend Ana Maui Harry's has...
-
Analyze the centrality of Off Whites' significant collaborations with other luxury and sportswear brands for accruing valuable brand equity.?
Study smarter with the SolutionInn App