3.1 Use a 2-month moving average on all the data and plot the averages and the prices (4 marks)

3.2 Use a 3- month moving average and add the 3-month plot to the graph created in Part (3.1). (4 marks)

3.3 Which is better (using the mean absolute deviation) the two-month average over the three-month average? (6 marks)

3.4 Compute the forecast for each month using exponential smoothing with an initial forecast for January of R1.80. Use smoothing constant of 0.1 and then 0.3 and finally 0.5. Using MAD which smoothing constant is the be best

Maxpro uses the ZX-81 chip in some of its laptop computers. The prices for the chip during the past 12 months were as follows: 3.1 Use a 2-month moving average on all the data and plot the averages and the prices 3.2 Use a 3- month moving average and add the 3-month plot to the graph created in Part (3.1). 3.3 Which is better (using the mean absolute deviation) the two-month average over the three-month average? 3.4 Compute the forecast for each month using exponential smoothing with an initial forecast for January of R1.80. Use smoothing constant of 0.1 and then 0.3 and finally 0.5 . Using MAD which smoothing constant is the be best (4 marks) (4 marks) (6 marks) (6 marks)