Q$.3$

forecast sales based on the following data using

$($a$)$ Naive method $(3$ manes

$($b$)$ Three$-$year averge method $(3$ manes$)$

$($c$)$ Exponential soothing method with a s a smovthenil coeftient of $0\mathrm{.}7[4$marks$]$

Calculate the Reot mean square Error in each

case.

Q$.4$

$($a$)$ with a simple example, illustrate How the following concepts from game theory can be copplied to a duopoly market. A duopoly is a market with only two competing firms.

$($a$)$ Dominant strategies $(2\mathrm{.}5$ marks$)$

$($b$)$ Nash Equilibrium $[2\mathrm{.}5$ marks$]$

$($b$)$ Explain the profits and losses of monopolistic competition firms and how such an economy. finds equitibrium $[$smantes$]$