1. Consider the data in the following table.

Observed values	Forecast 1	Forecast 2
310	360	335
375	350	425
450	400	475
520	545	595

Which forecast is better? Justify your answer.

2. The following graph shows part of observed time series demand and two different moving average forecasts (labeled as x and y).

   Which forecast uses a longer moving average period? Why? Which forecast is better? Based on the graph, what may be the reason for one forecast being better than the other for this set of data?

3. The technology is available for increasing the airplane speed such that the cross-Pacific travel (say, from Japan to the U.S.) can be cut short by two hours. Design a survey study to find out the costumers willingness for this new service.

40 35 30 Observed Demand 25 EX -- 20 Milorada 15 10 10 12 14 16 18 20 22 24 26 28 30 32 Month