Problems:
Forecasting time series based on Moving average
Please provide tutorial help involving moving averages.
Moving averages often are used to identify movement in stock prices. Daily closing prices (in dollars per share) for a large company (Tab STOCK PRICES data set)
a) Use a 3-time period moving average to smooth the time series. Forecast the closing price for the next trading day.
b) Use the exponential smoothing with a smoothing constant of .6 to smooth the time series. Forecast the closing price for the next trading day.
c) Can you improve upon your exponential smoothing?
d) Which method do you prefer?