C) Which is better the 2-month average or the 3-month average?

D) Compute the forecasts for each month using exponential smoothing with an initial forecast for January of $1.90.

Use a=.1 then a=.3 and finally a=.5 Using MAD which a is the best?

Lenovo uses the ZX-81 chip in some of its laptop computers. The prices for the chip during the last 12 months were as follows: Month January February March April May June Price Per Chip $1.90 $1.61 $1.60 $1.85 $1.91 $1.95 Month July August September October November December Price Per Chip $1.80 $1.85 $1.65 $1.60 $1.50 $1.75 This exercise contains only parts a, b, and c. a) Using a 2-month moving average, the forecast for periods 11 and 12 is (round your responses to two decimal places): Jun Month Mar Apr Forecast $1.76 1.61 May 1.73 Jul 1.93 Aug 1.88 Sep 1.83 Oct Nov Dec 1.75 1.63 1.55 1.88 b) Using a 3-month moving average, the forecast for periods 11 and 12 is (round your responses to two decimal places): Jul Oct Nov Dec Month Forecast Apr $1.70 May 1.69 Jun 1.79 Aug 1.89 Sep 1.87 1.90 1.77