Use Holt’s method to create a model that minimizes the MSE for the data set. Use Solver to determine the optimal values of α and β. What are the optimal values of α and β? Prepare a line graph comparing the predictions from Holt’s method versus the original data. What are the forecasts for the next 2 years using this technique?
Use Holt’s method to create a model that minimizes the MSE for the data set. Use Solver to determine the optimal values of α and β. What are the optimal values of α and β? Prepare a line graph comparing the predictions from Holt’s method versus the original data. What are the forecasts for the next 2 years using this technique?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter13: Regression And Forecasting Models
Section: Chapter Questions
Problem 42P: The file P13_42.xlsx contains monthly data on consumer revolving credit (in millions of dollars)...
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9.) Use Holt’s method to create a model that minimizes the MSE for the data set. Use Solver to determine the optimal values of α and β.
- What are the optimal values of α and β?
- Prepare a line graph comparing the predictions from Holt’s method versus the original data.
- What are the
forecasts for the next 2 years using this technique?
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