The Consumer Price Index (CPI), which is published by the U.S. Bureau of Labor Statistics, is a measurement that reflects changes in consumer prices over time. The following data show the CPI over a 10-year period using 1982?1984 as the base year with the CPI = 100. These data can also be found in the Excel file CPI.xlsx.

a. Forecast the CPI for 2018 using exponential smoothing with trend adjustment, and set ? = 0.3 and ? = 0.5.

b. Calculate the MAD for the forecast in part a.

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Year Year CPI CPI 2008 215.3 2013 233.0 2014 2009 214.6 236.7 2010 2015 218.1 237.0 2011 240.0 224.9 2016 245.1 2012 229.6 2017