a) Forecast the company's market share for the 13th quarter by exponential smoothing with w=0.3.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
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ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter5: Business And Economic Forecasting
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Problem 7E: The Questor Corporation has experienced the following sales pattern over a 10-year period: Compute...
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9- Following table presents the quarterly market share of Tasty Food Company;
Quarter
Firm's Actual Market Share
1
20
22
3
23
4
24
5
18
23
7
19
8
17
22
10
23
11
18
12
23
13
?
a) Forecast the company's market share for the 13th quarter by exponential smoothing with w=0.3.
b) Calculate the Root-Mean Square Error (RMSE) for the exponential forecast using w=0.3.
c) If the RMSE for the exponential forecast using w=0.5 is 2.91 then compare which forecasts is better
and why?
Transcribed Image Text:9- Following table presents the quarterly market share of Tasty Food Company; Quarter Firm's Actual Market Share 1 20 22 3 23 4 24 5 18 23 7 19 8 17 22 10 23 11 18 12 23 13 ? a) Forecast the company's market share for the 13th quarter by exponential smoothing with w=0.3. b) Calculate the Root-Mean Square Error (RMSE) for the exponential forecast using w=0.3. c) If the RMSE for the exponential forecast using w=0.5 is 2.91 then compare which forecasts is better and why?
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