(solution) The following time series shows the sales of a particular product over the past 12 months: Month 1

(solution) The following time series shows the sales of a particular product over the past 12 months: Month 1

The following time series shows the sales of a particular product over the past 12 months: Month 1 Sales 105 Month 7 Sales 145 2 135 8 140 3 120 9 100 4 105 10 80 5 90 11 100 6 120 12 110 Construct a time series plot. What type of pattern exists in the data? Use a = 0.3 to compute the exponential smoothing values for the time series. Use Excel Solver or LINGO to find the value of a that minimizes MSE. ( Hint : Mini- mize the sum of squared error.)