Explore BrainMass

Time Series Data Gasoline Sales

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

Prob S.
Here are the gasoline sales time series data: Week Sales (1000s of gallons)

1 17

2 21

3 19

4 23

5 18

6 16

7 20

8 18

9 22

10 20

11 15

12 22

1. Use a weight of 1/2 for the most recent observation, 1/3 for the second most recent, and 1/6 for the third most recent to compute a 3-week weighted moving average for the time series.

2. Compute the MSE for the weighted moving average in part (a). Now, calculate the unweighted moving average and the corresponding MSE. Which method do you prefer: the unweighted or weighted from part a) and why?

3. Suppose that you are allowed to choose any weights as long as they sum to 1. Could you always find a set of weights that would make the MSE smaller for a weighted moving average than for an unweighted moving average? Why or why not?

4. Use exponential smoothing with α=0.35 Calculate the MSE.

© BrainMass Inc. brainmass.com October 25, 2018, 12:11 am ad1c9bdddf

Solution Summary

The solution comprised of questions related with Time Series Data.

See Also This Related BrainMass Solution

Multiple Regression & Seasonal Forecasting

This solution describes how to do multiple regression using Excel and the Megastat plugin. Students are given step-by-step instructions on how to use the MegaStat plugin for Excel and told why Excel's Data Analysis Toolpak isn't reliable for rigorous statistical analysis. Attachments include example spreadsheets, a video tutorial, and some brief textbook material.

View Full Posting Details