Quarter Stock (%) Year 1, qtr 1 Year 1, qtr 2 Year 1, qtr 3 Year 1, qtr 4 Year 2, qtr 1 29.8 31.0 29.9 30.1 32.2 Year 2, qtr 2 Year 2, qtr 3 Year 2, qtr 4 Year 3, qtr 1 31.5 32.0 31.9 30.0

College Algebra (MindTap Course List)
12th Edition
ISBN:9781305652231
Author:R. David Gustafson, Jeff Hughes
Publisher:R. David Gustafson, Jeff Hughes
Chapter4: Polynomial And Rational Functions
Section4.6: Rational Functions
Problem 11SC: Find the mean hourly cost when the cell phone described above is used for 240 minutes.
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The following table reports the percentage of stocks in a portfolio for nine quarters:

a. Construct a time series plot. What type of pattern exists in the data?
b. Use trial and error to find a value of the exponential smoothing coefficient a that
results in a relatively small MSE.
c. Using the exponential smoothing model you developed in part b, what is the forecast
of the percentage of stocks in a typical portfolio for the second quarter of year 3?

Quarter
Stock (%)
Year 1, qtr 1
Year 1, qtr 2
Year 1, qtr 3
Year 1, qtr 4
Year 2, qtr 1
29.8
31.0
29.9
30.1
32.2
Year 2, qtr 2
Year 2, qtr 3
Year 2, qtr 4
Year 3, qtr 1
31.5
32.0
31.9
30.0
Transcribed Image Text:Quarter Stock (%) Year 1, qtr 1 Year 1, qtr 2 Year 1, qtr 3 Year 1, qtr 4 Year 2, qtr 1 29.8 31.0 29.9 30.1 32.2 Year 2, qtr 2 Year 2, qtr 3 Year 2, qtr 4 Year 3, qtr 1 31.5 32.0 31.9 30.0
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