90.2K

Verified Solution

Link Copied!

Canton Supplies Inc. is a service firm that employs approximately 100 people. Because of the necessity of meeting monthly cash obligations, the CFO wants to develop a forecast of monthly cash requirements. Because of a recent change in equipment and operating policy, only the past 7 months of data are considered relevant. Cash Required Cash Required Month Month ($1,000) 192 ($1,000) 228 1 5 2 215 6 241 3 219 7 204 4 260 Find the best number of months to use in a moving average forecast based on MSE. Do not round intermediate calculations. Round your answers to two decimal places. Number of months MSE 2 3 4 The -Select- model is the best. Find the best single exponential smoothing model by evaluating the MSE from 0.1 to 0.9, in increments of 0.1. Do not round intermediate calculations. Round your answers to two decimal places. Alpha MSE 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 The model based on a smoothing constant of -Select- is the best. How does the best single exponential smoothing model compare with the best moving average model? The -Select v model has the lowest MSE. Canton Supplies Inc. is a service firm that employs approximately 100 people. Because of the necessity of meeting monthly cash obligations, the CFO wants to develop a forecast of monthly cash requirements. Because of a recent change in equipment and operating policy, only the past 7 months of data are considered relevant. Cash Required Cash Required Month Month ($1,000) 192 ($1,000) 228 1 5 2 215 6 241 3 219 7 204 4 260 Find the best number of months to use in a moving average forecast based on MSE. Do not round intermediate calculations. Round your answers to two decimal places. Number of months MSE 2 3 4 The -Select- model is the best. Find the best single exponential smoothing model by evaluating the MSE from 0.1 to 0.9, in increments of 0.1. Do not round intermediate calculations. Round your answers to two decimal places. Alpha MSE 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 The model based on a smoothing constant of -Select- is the best. How does the best single exponential smoothing model compare with the best moving average model? The -Select v model has the lowest MSE

Answer & Explanation Solved by verified expert

See Answer