PART 5: Time Series Analysis (Time Series Forecasting)

Question 5: The data on the EXCEL spreadsheet shows the average weekly prices of gasoline

in the UAE for a four month period. Use the data to answer the following questions:

a) Determine the 4-period moving average for all the weeks in the four month period.

b) Using the simple exponential smoothing approach and a smoothing constant of a provid

forecasts of gasoline prices if the initial forecast of gasoline price is 2.935 dirhams.

c) Explain the difference between a moving average model and an exponential smoothing model.