Question: a ) Use a 2 - month moving average on all the data and plot theaverages and the prices. b ) Use a 3 -

a) Use a 2-month moving average on all the data and plot theaverages and the prices. b) Use a 3-month moving average and add the 3-month plot tothe graph created in part (a).c) Which is better (using the mean absolute deviation): the2-month average or the 3-month average? d) Compute the forecasts for each month using exponentialsmoothing, with an initial forecast for January of $1.80. Use a=.1, then a =.3, and finally a =.5. Using MAD, which ais the best? Px

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