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Expoentail smoothing

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Problem #7.6
Following are time-series data for nine time periods. Use exponential smoothing with constraints of .3 and .7 to forecast time periods 3 through 9. Let the value for time period 1 be the forecast for time period 2. Compute additional forecasts for time periods 4 through 9 using a 3-month average. Compute the errors for the forecasts and discuss the size of the errors under each method.
Time Period Value Time Period Value
1 9.4 6 11.0
2 8.2 7 10.3
3 7.9 8 9.5
4 9.0 9 9.1
5 9.8

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Problem #7.6
Following are time-series data for nine time periods. Use exponential smoothing with constraints of .3 and .7 to forecast time periods 3 through 9. Let the value for time period 1 be the forecast for time period 2. Compute additional forecasts for time periods 4 through 9 using a 3-month average. Compute the errors for the forecasts and discuss the size of the errors under each method.
Time ...

Solution Summary

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

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