The US Census Bureau publishes data on factory orders for all manufacturing durable goods, and nondurable goods industries . Data shown here are the factory orders in the united states over last 6 years.

We wanted to forecast for period 7 but we do not know which of these two methods is the best: MA(2) or exponential smoothing with = 0.35 .Please see data below and report MAE for MA(2) and MAE for exponential with = 0.35 and recommend which one to be used to forecast for period 6

year	Factory order ($100billion)	MA(2)
1	26
2	28
3	30	27
4	28	29
5	29	29

year	Factory order ($100billion)	Exponential =0.35
1	26
2	28	26
3	30	26.7
4	28	27.855
5	29	27.906

Question: report MAE for MA(2) and MAE for exponential with = 0.35 .Based on MAE which one has to be used to forecast for period 6

	A.	MAE(MA(2))= 1.33& MAE(exp)=1.635 , we recommend MA(2) to be used to forecast for period 6
	B.	MAE(MA(2))= 0.667&MAE( exp)=1.635 we recommend MA(2) to be used to forecast for period 6