Question: The Consumer Price Index (CPI), which is published by the U. S. Bureau of Labor Statistics, is a measurement that reflects changes in consumer prices

The Consumer Price Index (CPI), which is published by the U. S. Bureau of Labor Statistics, is a measurement that reflects changes in consumer prices over time. The following data show the CPI over a 10- year period using 1982 as the base year with the CPI = 100. These data can also be found in the Excel file CPI.xlsx.

a. Forecast the CPI for 2013 using exponential smoothing with trend adjustment, and set Î± = 0.3 and Î² = 0.5.
b. Calculate the MAD for the forecast in part a.

CPI Year 2003 184.0 2004 2005 2006 201.6 2007 207.3 CPI 2008 215.3 2009 214.5 2010 218.1 2011 224.9 2012 229.6 188.9 195.3

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