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    Solve 15 questions on decision theory

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

    We received a test prep question bank to prepare for our final exam. I need solutions. This is not an assignment. This is a practice test questions.

    © BrainMass Inc. brainmass.com April 4, 2020, 1:27 am ad1c9bdddf
    https://brainmass.com/statistics/descriptive-statistics/solve-questions-decision-theory-615365

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    1.
    Period Sales Moving average Absolute Error Squared Error
    1 338
    2 219
    3 278 278.33 0.33 0.11
    4 265 254 11 121
    5 314 285.67 28.33 802.78
    6 323 300.67 22.33 498.78

    2.
    Period Sales Moving average Absolute Error Squared Error
    1 338
    2 219 338
    3 278 314.20 36.20 1310.44
    4 265 306.96 41.96 1760.64
    5 314 298.57 15.43 238.15
    6 323 301.65 21.35 455.63

    3.
    For moving average, MSE=(0.11+121+802.78+498.78)/4=355.67 and for exponential smoothing, MSE=(1310.44+1760.64+238.15+455.63)/4=941.22. Since I prefer smaller MSE, moving average is the better method.

    4.
    Period Sales (Y) L B F
    1 250 250 15
    2 265 265 15 265
    3 278 279.6 15 280
    4 265 288.68 14.41 294.60
    5 314 305.27 14.63 303.09
    6 323 320.52 14.69 319.90

    5.
    Yes, trend component is significant because its p-value is 0 which is very small.

    Yes, there is a seasonal trend if alpha is 0.10 because all p-values of quarters ...

    Solution Summary

    The solution gives detailed steps on solving 15 questions on decision theory. Lots of topics are covered.

    $2.19

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