Target Corp. operates big box stores that sell everyday essentials and fashionable differentiated merchandise. It also operates

Target Corp. operates €œbig box€ stores that sell everyday essentials and fashionable differentiated merchandise. It also operates an online business at target.com. Target€™s reported gross earnings per share for the years 2003€“2006 are given here.

a) Find a prediction for 2007 based on a 3- year moving ­average and one for a 4-year moving average.
b) Find a prediction for 2007 based on an exponential smoothing model with a = 0.8.
c) Earnings per share in 2007 were, in fact, $ 3.18. Compute the absolute percentage error for each prediction.

Transcribed Image Text:

2003 2004 205 2006 1.82 2.0 2 2.17 273