Use a smoothing constant of a = 0.4 to compute the exponential smoothing forecasts. (Round your answers to two decimal places.) Time Series Value Month t Forecast F,

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(c) Use a smoothing constant of a = 0.4 to compute the exponential smoothing forecasts. (Round your answers to two decimal places.)
Time Series Value
Month t
Forecast Ft
Yt
1
105
2
135
3
120
105
90
120
7
145
140
9.
100
10
80
11
100
12
110
Does a smoothing constant of 0.2 or 0.4 appear to provide more accurate forecasts based on MSE?
A smoothing constant of 0.4 is better than a smoothing constant of 0.2 since the MSE is greater for 0.4 than for 0.2.
A smoothing constant of 0.2 is better than a smoothing constant of 0.4 since the MSE is greater for 0.2 than for 0.4.
A smoothing constant of 0.2 is better than a smoothing constant of 0.4 since the MSE is less for 0.2 than for 0.4.
A smoothing constant of 0.4 is better than a smoothing constant of 0.2 since the MSE is less for 0.4 than for 0.2.
O O O O
Transcribed Image Text:(c) Use a smoothing constant of a = 0.4 to compute the exponential smoothing forecasts. (Round your answers to two decimal places.) Time Series Value Month t Forecast Ft Yt 1 105 2 135 3 120 105 90 120 7 145 140 9. 100 10 80 11 100 12 110 Does a smoothing constant of 0.2 or 0.4 appear to provide more accurate forecasts based on MSE? A smoothing constant of 0.4 is better than a smoothing constant of 0.2 since the MSE is greater for 0.4 than for 0.2. A smoothing constant of 0.2 is better than a smoothing constant of 0.4 since the MSE is greater for 0.2 than for 0.4. A smoothing constant of 0.2 is better than a smoothing constant of 0.4 since the MSE is less for 0.2 than for 0.4. A smoothing constant of 0.4 is better than a smoothing constant of 0.2 since the MSE is less for 0.4 than for 0.2. O O O O
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