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    Testing for serial correlation

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    Membership on a stock exchange for five years is given below:

    year members
    1996 520
    1997 510
    1998 505
    1999 508
    2000 512

    Use the exponential smoothing procedure to obtain estimates of the trend (this is not the logarithm approach here.
    Set the smoothed value for 1996 equal to the actual and use a smoothing constant o = 0.4. Compute the forecasted value for 2000.

    2. True or false?

    A common method of testing for auto collinearity (serial correlation) is a Wilcoxon signed rank test for one sample.

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    Simple Exponential Smoothing


    t Members Smoothed Forecast % ...

    Solution Summary

    The solution provides step by step method for the calculation of serial correlation . Formula for the calculation and Interpretations of the results are also included.