The following time series shows the sales of a particular product over the past 12 months:
|
Month
1
|
Sales
105
|
Month
7
|
Sales
145
|
|
2
|
135
|
8
|
140
|
|
3
|
120
|
9
|
100
|
|
4
|
105
|
10
|
80
|
|
5
|
90
|
11
|
100
|
|
6
|
120
|
12
|
110
|
a. Construct a time series plot. What type of pattern exists in the data?
b. Use a = 0.3 to compute the exponential smoothing values for the time series.
c. Use Excel Solver or LINGO to find the value of a that minimizes MSE. (Hint: Mini- mize the sum of squared error.)