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2 Vidhya Balan is planning to liquidate her investments in mutual funds and invest in real estate. Before making the change to her investment strategy, Vidhya wants to forecast the price of mutual funds for the next 2 months. She has collected the following data on the average fund |prices for the past 10 months. Average Month Fund Price 1 55.1 2 53.8 3 53.4 4 52.95 52.15 52.75 7 52.65 8 51.5 9. 52.25 10 51.7 Using a five-period moving average, forecast the |average fund price for Period 11. b. Using exponential smoothing with a 0.3 forecast the average fund price for Period 11. Assume an initial forecast for Month 2 (F2) as 55.10

2 Vidhya Balan is planning to liquidate her investments in mutual funds and invest in real estate. Before making the change to her investment strategy, Vidhya wants to forecast the price of mutual funds for the next 2 months. She has collected the following data on the average fund |prices for the past 10 months. Average Month Fund Price 1 55.1 2 53.8 3 53.4 4 52.95 52.15 52.75 7 52.65 8 51.5 9. 52.25 10 51.7 Using a five-period moving average, forecast the |average fund price for Period 11. b. Using exponential smoothing with a 0.3 forecast the average fund price for Period 11. Assume an initial forecast for Month 2 (F2) as 55.10

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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2 Vidhya Balan is planning to liquidate her investments in mutual funds and invest in real estate. Before making the change to her investment strategy, Vidhya wants to forecast the price of mutual funds for the next 2 months. She has collected the following data on the average fund prices for the past 10 months. Average Month Fund Price 1. 55.1 53.8 3 53.4 4 52.95 5 52.15 6. 52.75 7 52.65 8 51.5 9. 52.25 10 51.7 Using a five-period moving average, forecast the a average fund price for Period 11. b. |Using exponential smoothing with a = 0.3 forecast the average fund price for Period 11. Assume an initial forecast for Month 2 (F2) as 55.10
Transcribed Image Text:2 Vidhya Balan is planning to liquidate her investments in mutual funds and invest in real estate. Before making the change to her investment strategy, Vidhya wants to forecast the price of mutual funds for the next 2 months. She has collected the following data on the average fund prices for the past 10 months. Average Month Fund Price 1. 55.1 53.8 3 53.4 4 52.95 5 52.15 6. 52.75 7 52.65 8 51.5 9. 52.25 10 51.7 Using a five-period moving average, forecast the a average fund price for Period 11. b. |Using exponential smoothing with a = 0.3 forecast the average fund price for Period 11. Assume an initial forecast for Month 2 (F2) as 55.10
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