Shown here are the consumer price indexes (CPIs) for housing for the years 1988 through 2005 from the Bureau of Labor Statistics Data Web site. Use the data to answer the following questions.

a. Compute the 4-year moving average to forecast the CPIs from 1992 through 2005.

b. Compute the 4-year weighted moving average to forecast the CPIs from 1992 through 2005. Weight the most recent year by 4, the next most recent year by 3, the next year by 2, and the last year of the four by 1.

c. Determine the errors for parts (a) and (b). Compute MSE for parts (a) and (b).

Compare the MSE values and comment on the effectiveness of the moving average versus the weighted moving average for thesedata.

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Year 1988 1989 1990 1991 1992 1993 1994 1995 1996 Housing CPI 118.5 123.0 128.5 133.6 137.5 141.2 144.8 148.5 152.8 ousiin 1997 1998 1999 2000 2001 2002 2003 2004 2005 156.8 160.4 163.9 169.6 176.4 180.3 184.8 189.5 195.7