Shown here are the Canadian total monthly consumer price index (CPI) values for July 2016 through June 2019. Use the data to answer the following questions.

a. Compute the 4-month moving average to forecast the CPI from November 2016 to June 2019.

b. Compute the 4-month weighted moving average to forecast the CPI from November 2017 to June 2019. 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 these data.

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2016 2017 Month July August September October November December January February March April May June CPI 128.9 128.7 128.8 129.1 128.6 128.4 129.5 129.7 129.9 130.4 130.5 130.4