Question: a) Calculate forecasts using a three-period weighted moving average model (w1 =.3, w2 = .5, W3 = .2). (5 points) b) Calculate forecasts using simple

a) Calculate forecasts using a three-period

a) Calculate forecasts using a three-period weighted moving average model (w1 =.3, w2 = .5, W3 = .2). (5 points) b) Calculate forecasts using simple exponential smoothing model with a = .4 (5 points) c) Develop a linear trend model for these data. State/write the model. (10 points) d) Which forecast is best? Provide quantitative evidence and a verbal answer. (10 points) Year Audits 2005 2006 2007 2008 2009 2010 2011 2012 2013 5859 5276 5841 4654 4771 4669 4424 5089 4450

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