Purchase Solution

Forecasting a Gross Domestic Product

Not what you're looking for?

Ask Custom Question

The gross domestic product (GDP) of the United States from 1993 to 2004 is given in the table below. The numbers are in billions of U.S. dollars.
Year GDP ($Billions)
1993 6,657
1994 7,072
1995 7,398
1996 7,817
1997 8,304
1998 8,747
1999 9,268
2000 9,817
2001 10,128
2002 10,487
2003 11,004
2004 11,680
a) Develop forecasts for the GDP of 2005 using exponential smoothing with smoothing constants of 0.4 and 0.6. (Assume the forecast is $6,650 for 1993)
b) Which of these models has the lowest mean absolute deviation.

Purchase this Solution

Solution Summary

The solution discusses forecasting for a gross domestic product. Which model has the lowest mean absolute deviation is determined.

Purchase this Solution


Free BrainMass Quizzes
Paradigms and Frameworks of Management Research

This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.

IPOs

This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)

Learning Lean

This quiz will help you understand the basic concepts of Lean.

Academic Reading and Writing: Critical Thinking

Importance of Critical Thinking

Cost Concepts: Analyzing Costs in Managerial Accounting

This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.