# Forecasting time series based on Moving average

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Please provide tutorial help involving moving averages.

Moving averages often are used to identify movement in stock prices. Daily closing prices (in dollars per share) for a large company (Tab STOCK PRICES data set)

a) Use a 3-time period moving average to smooth the time series. Forecast the closing price for the next trading day.

b) Use the exponential smoothing with a smoothing constant of .6 to smooth the time series. Forecast the closing price for the next trading day.

c) Can you improve upon your exponential smoothing?

d) Which method do you prefer?

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##### Solution Summary

This solution provides a step by step method for computing the Time Series Forecasting.

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Moving Average

number of periods: 3

t Price 3MA

1 81.32

2 81.10

3 80.38 80.933

4 81.34 80.940

5 80.54 80.753

6 80.62 80.833

7 79.54 80.233

8 79.46 79.873

9 81.02 80.007

10 80.98 80.487

11 80.80 80.933

12 81.44 81.073

13 81.48 81.240

14 80.75 81.223

15 80.48 80.903

16 80.01 80.413

17 80.33 80.273

Simple Exponential ...

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