Question

The following time series shows the sales of particular product over the past 12 months (Please show your works, do not use xlminer, thank you)

Months	Sales
1	105
2	135
3	120
4	105
5	90
6	120
7	145
8	140
9	100
10	80
11	100
12	110

a.Construct a time series plot. What type of pattern exists in the data?

b. use a = 0.3 to compute the exponential smoothing values for the time series.

c. Use trial and error to find a value of the exponential smoothing coefficient a that results in a relatively small MSE.

Answer 1