A Time Series Is Shown in the Table Below A Apply Exponential Smoothing with W = 0

question 72

Essay

A time series is shown in the table below: $$\begin{array} { | c c | } \hline \text { Period t } & \\\hline 1 & 40 \\2 & 45 \\3 & 44 \\4 & 47 \\5 & 48 \\6 & 50 \\7 & 52 \\8 & 51 \\9 & 48 \\10 & 47 \\\hline\end{array}$$ a. Apply exponential smoothing with w = 0.1 and w = 0.8 to help detect the components of the time series.
b. Draw the time series and the two sets of exponentially smoothed values. Does there appear to be a trend component in the time series?

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Definitions:

Recessions

A temporary downturn in the economy marked by decreased trade and industrial production, typically recognized by a decrease in Gross Domestic Product (GDP) for two consecutive quarters.

Long-Run Aggregate Supply Curve

A graphical representation showing the relationship between the price level and the quantity of output that an economy can produce when all resources are fully employed, assuming no changes in technology or resource availability.

Classical Model

An economic theory that suggests markets function best with minimal government intervention and that supply and demand are the primary forces driving the economy.

Self-Regulating Market

A market mechanism in which market forces such as supply and demand are allowed to operate freely without external intervention, theoretically leading to efficient outcomes.