Question: Dell uses the CR5 chip in some of its laptop computers. The prices for the chip during the last 12 months were as follows:

a.) Use a 2-month moving average on all the data and plot the averages and the prices.

b.) Use a 3-month moving average and add the 3-month plot to the graph created in part (a).

c.) Which is better (using the mean absolute deviation): the 2-month average or the 3-month average?

d.) Compute the forecasts for each month using exponential smoothing, with an initial forecast for January of $1.80.

Use smoothing constants of .1, .3, and .5 Using MAD) Mean Absolute Deviation, which smoothing constant is the best?