Ten weeks of data on the Commodity Futures Index are 7.35, 7.40, 7.55, 7.56, 7.60, 7.52, 7.52, 7.70, 7.62, and 7.55.
a. Construct a time series plot. What type of pattern exists in the data?
b. Compute the exponential smoothing forecasts for a = .2.
c. Compute the exponential smoothing forecasts for a = .3.
d. Which exponential smoothing constant provides more accurate forecasts based on MSE? Forecast week 11.
This solution explains how to create a time series plot and how to compute the exponential smoothing forecasts for given values of a.