The purchasing-power value figures for the minimum wage in dollars for the years
ID: 3332054 • Letter: T
Question
The purchasing-power value figures for the minimum wage in dollars for the years 1 through 18 are shown here. Use these data and exponential smoothing to develop forecasts for the years 2 through 18. Try = .1, .5, and .8, and compare the results using MAD. Select the value of alpha that worked best and use your exponential smoothing results to predict purchasing power for year for 19.
(Give the answer to two decimal places.)
F (19)=
Year PurchasingPower Year Purchasing
Power 1 $6.04 10 $4.34 2 5.92 11 4.67 3 5.57 12 5.01 4 5.40 13 4.86 5 5.17 14 4.72 6 5.00 15 4.60 7 4.91 16 4.48 8 4.73 17 4.86 9 4.55 18 5.15
Explanation / Answer
alpha = 0.8 produece min MAD
formulas
year Purchasing alpha= 0.1 Power difference alpha=0.5 alpah = 0.8 1 6.04 6.04 0 6.04 0 6.04 0 2 5.92 6.04 0.12 6.04 0.12 6.04 0.12 3 5.57 6.028 0.458 5.98 0.41 5.944 0.374 4 5.4 5.9822 0.5822 5.775 0.375 5.6448 0.2448 5 5.17 5.92398 0.75398 5.5875 0.4175 5.44896 0.27896 6 5 5.848582 0.848582 5.37875 0.37875 5.225792 0.225792 7 4.91 5.763724 0.853724 5.189375 0.279375 5.045158 0.135158 8 4.73 5.678351 0.948351 5.049688 0.319688 4.937032 0.207032 9 4.55 5.583516 1.033516 4.889844 0.339844 4.771406 0.221406 10 4.34 5.480165 1.140165 4.719922 0.379922 4.594281 0.254281 11 4.67 5.366148 0.696148 4.529961 0.140039 4.390856 0.279144 12 5.01 5.296533 0.286533 4.59998 0.41002 4.614171 0.395829 13 4.86 5.26788 0.40788 4.80499 0.05501 4.930834 0.070834 14 4.72 5.227092 0.507092 4.832495 0.112495 4.874167 0.154167 15 4.6 5.176383 0.576383 4.776248 0.176248 4.750833 0.150833 16 4.48 5.118745 0.638745 4.688124 0.208124 4.630167 0.150167 17 4.86 5.05487 0.19487 4.584062 0.275938 4.510033 0.349967 18 5.15 5.035383 0.114617 4.722031 0.427969 4.790007 0.359993 19 5.046845 4.936015 5.078001 MAD 0.564488 0.268107 0.220687Related Questions
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