1. Determine the expenses forecast using a two (2) period moving average.
2. Determine the expenses forecast using a two (2) period weighted moving average. Use 0.8 & 0.5 for the weights of the most recent and second most recent periods respectfully.
3. Develop an exponential smoothing forecast using ?=0.1. Assume the forecast for the first month is the actual expenses for that month.
4. Evaluate the accuracy of each method, using the MAD and MSE.
5. Which forecasting method is the most accurate and why?
   

You are given the following information, comprising of an individual's expenses for the year 2015. Use the information provided to forecast the expenses for the year 2016. Month Expenses January 1977 February 820 March 970 April 1082 May 1220 June 1281 July 1546 August 1788 September 895 October 1108 November 1824 December 1954