(b) The graph shown is a time series graph for US inflation rate from 1983 to 2010. Use it to answer the questions that follow. U.S. Inflation Rate 16.00 14.00 12.00 10.00 8.00 6.00 4.00 2.00 0.00 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 (i) Which component(s) in part (a) is/are exhibited in the graph? [2 marks] (ii) Is the graph stationary or non-stationary? Explain. [3 marks] (c) Each month, Uncle Joe's Auto Parts uses exponential smoothing (with a = 0.25) to predict the number of barrels of brake fluid that will be sold during the next month. In June Uncle Joe forecast that he would sell 37 barrels of brake fluid during July. Uncle Joe actually sold 43barrels in July. (i) What is Uncle Joe's forecast for brake fluid sales in August and September? [7 marks] (ii) Suppose that Joe sells 32 barrels of brake fluid in August. What is the revised forecast for September? [2 marks] (b) The graph shown is a time series graph for US inflation rate from 1983 to 2010. Use it to answer the questions that follow. U.S. Inflation Rate 16.00 14.00 12.00 10.00 8.00 6.00 4.00 2.00 0.00 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 (i) Which component(s) in part (a) is/are exhibited in the graph? [2 marks] (ii) Is the graph stationary or non-stationary? Explain. [3 marks] (c) Each month, Uncle Joe's Auto Parts uses exponential smoothing (with a = 0.25) to predict the number of barrels of brake fluid that will be sold during the next month. In June Uncle Joe forecast that he would sell 37 barrels of brake fluid during July. Uncle Joe actually sold 43barrels in July. (i) What is Uncle Joe's forecast for brake fluid sales in August and September? [7 marks] (ii) Suppose that Joe sells 32 barrels of brake fluid in August. What is the revised forecast for September? [2 marks]