Purchase Solution

Time Series Data Gasoline Sales

Not what you're looking for?

Ask Custom Question

Prob S.
Here are the gasoline sales time series data: Week Sales (1000s of gallons)

1 17

2 21

3 19

4 23

5 18

6 16

7 20

8 18

9 22

10 20

11 15

12 22

1. Use a weight of 1/2 for the most recent observation, 1/3 for the second most recent, and 1/6 for the third most recent to compute a 3-week weighted moving average for the time series.

2. Compute the MSE for the weighted moving average in part (a). Now, calculate the unweighted moving average and the corresponding MSE. Which method do you prefer: the unweighted or weighted from part a) and why?

3. Suppose that you are allowed to choose any weights as long as they sum to 1. Could you always find a set of weights that would make the MSE smaller for a weighted moving average than for an unweighted moving average? Why or why not?

4. Use exponential smoothing with α=0.35 Calculate the MSE.

Purchase this Solution
Solution Summary

The solution comprised of questions related with Time Series Data.

Solution provided by:
Jayant Kumar, MBA
Education
  • MBA, Indian Institute of Finance
  • Bsc, Madras University
Recent Feedback
  • "I've posted a similar question for another course. It's post 657940, and it's a practice problem that I'd like to use for the final exam. Your help will be greatly appreciated. "
  • "thank you!"
  • "Thank you again Jayant. You are super fast. "
  • "Thank you Jayant. You are appreciated. "
  • "Again, thank you Jayant. You are wonderful. "
Purchase this Solution
Free BrainMass Quizzes
Situational Leadership

This quiz will help you better understand Situational Leadership and its theories.

Lean your Process

This quiz will help you understand the basic concepts of Lean.

Organizational Leadership Quiz

This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.

Change and Resistance within Organizations

This quiz intended to help students understand change and resistance in organizations

Academic Reading and Writing: Critical Thinking

Importance of Critical Thinking

View More Free Quizzes
Related BrainMass Solutions

  • Forecasting problems

    The expert examines gasoline sales by using time series.

  • exponential trend forecasting

    425514 Statistics for gasoline prices: Time series plt, exponential trend forecasting See attached file. Are gasoline prices higher during the height of the summer vacation season?

  • simple aggregate price index

    You may also use Megastat, Time Series/Forecasting function, to compute the moving average. 3. Convert the gasoline retail price to a price index using the year 1990 as a base year (1990 = 100). Graph the data in line chart.

  • Exponential Smoothing Forecast, MSE, MAE and MAPE

    497911 Exponential Smoothing Forecast, MSE, MAE and MAPE With the gasoline time series data from Table 6.1, show the exponential smoothing forecasts using x = 0.1. Week 1 2 3 4 5 6 7 8 9 10 11 12 Value 17 21 19 23 18 16 20 18 22 20 15 22 a.

  • Time-series plot

    This solution constructs a time-series plot and evaluates the data patterns.

  • factors affecting the Market demand

    One can use the Time series and regression analysis to do sales forecast: I Time series Time series is one of the quantitative methods we use to determine patterns in data collected over time.

  • Time series analysis

    This solution gives the step by step method for time series data on price per gallon of gasoline.

  • Correlation Analysis for the Hybrid Honda Civic

    Honda Civic Hybrid-Correlation Situation Gasoline prices make the car manufacturer think harder as the market need a more fuel efficient car. At the same time the vehicle needs to be environment friendly.

  • Linear trend equation

    The following are annual sales data (in millions of dollars) from 2002 to 2007. Based on this data develop a linear trend equation for this time series. What is the firm's average increase in sales per year?

View More Related Solutions