• Every learner should submit his/her own homework solutions. However, you are allowed to discuss the homework with each other (in fact, I encourage you to form groups and/or use the forums) – but everyone must submit his/her own solution; you may not copy someone else’s solution.
• The homework will be peer-graded. In analytics modeling, there are often lots of different approaches that work well, and I want you to see not just your own, but also others.
• The homework grading scale reflects the fact that the primary purpose of homework is learning:
Rating Meaning Point value (out of 100) 4 All correct (perhaps except a few details) with a deeper solution than expected 100 3 Most or all correct 90 2 Not correct, but a reasonable attempt 75 1 Not correct, insufficient effort 50 0 Not submitted 0
Question 7.1
Describe a situation or problem from your job, everyday life, current events, etc., for which exponential smoothing would be appropriate. What data would you need? Would you expect the value of (the first smoothing parameter) to be closer to 0 or 1, and why?
Question 7.2
Using the 20 years of daily high temperature data for Atlanta (July through October) from Question 6.2 (file temps.txt), build and use an exponential smoothing model to help make a judgment of whether the unofficial end of summer has gotten later over the 20 years. (Part of the point of this assignment is for you to think about how you might use exponential smoothing to answer this question. Feel free to combine it with other models if you’d like to. There’s certainly more than one reasonable approach.)
Note: in R, you can use either HoltWinters (simpler to use) or the smooth package’s es function (harder to use, but more general). If you use es, the Holt-Winters model uses model=”AAM” in the function call (the first and second constants are used “A”dditively, and the third (seasonality) is used “M”ultiplicatively; the documentation doesn’t make that clear).
