Varto Company has 7,000 units of its sole product in inventory that it produced last year at a cost of $22 each. This year’s mod
1 answer:
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Answer:
trim ratio = 1.15 and bearish
Explanation:
given data
stock = 1,455
decline = 1,553
volume in advancing issues = 852581
volume in declining issues = 1,058312
solution
we get here the trim ration is express here as
trim ratio = (stock ÷ decline) ÷ ( advancing issues ÷ declining issues ) ...............................1
put here value and we get trim ratio
trim ratio =
solve it we get '
trim ratio = 1.15
and here we see trim is greater than 1 so
it is bearish
Answer:
MAD: 10.04, 11.53
MAPSE: 10% , 12%
MSE : 146.33, 178.72
Bias : -0.56 , -0.96
3-week moving average method is better
Explanation:
i ) Evaluate MAD ( average of absolute errors )
using 3 week moving average
= 10.04
using simple exponential smoothing
= 11.53
ii) MAPSE ( average of absolute percentage error )
using 3 week moving average
= 10%
using simple exponential smoothing
= 12%
iii) MSE ( average of Squared Errors )
3 week MV = 146.33 , Simple exponential smoothing = 178.72.
iv) Bias
3 week MV = -5/9 = -0.56, Simple exponential smoothing = -8.69/9 = -0.96.
v) TS ( Total error / MAD )
3 week MV = -5 / 10.04 = -0.49 ,
simple exponential smoothing = -8.69 / 11.53 = -0.75
b) I prefer 3-week moving average based on the values of MAD , MAPE, MSE, bias and TS which shows that there is a better estimate when using the 3 -weeks moving average.
Attached below is the Tabular calculations of the required parameters for the question
