Question: Following are time series data for nine time periods. Use exponential smoothing with constants of .3 and .7 to forecast time periods 3 through 9. Let the value for time period 1 be the forecast for time period 2. Compute additional forecasts for time periods 4 through 9 using a 3-month moving average. Compute the errors for the forecasts and discuss the size errors under each method.

Time Period Value

1 9.4

2 8.2

3 7.9

4 9.0

5 9.8

6 11.0

7 10.3

8 9.5

9 9.1