A monthly time series is shown in the table to the

Chapter 14, Problem 16E

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QUESTION:

A monthly time series is shown in the table to the right.

a. Calculate the missing values in the exponentially smoothed series using w = .5.

b. Graph the time series and the exponentially smoothed series on the same graph.

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QUESTION:

A monthly time series is shown in the table to the right.

a. Calculate the missing values in the exponentially smoothed series using w = .5.

b. Graph the time series and the exponentially smoothed series on the same graph.

ANSWER:

Step 1 of 3

a)  We know that the exponential smoothed series,  for weight, w, is calculated as

     

     where  is the exponential smoothed value at time period t,

                 is the actual value at time period t and

              is the exponential smoothed value at time period 1 -1.

     Here the initial smoothed value as

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