The following data (stored in Coffee Price Portugal represent the retail price of coffee (in‚¬/kg) in Portugal from 2004 to 2011:

a. Plot the time series.
b. Fit a three-year moving average to the data and plot the results.
c. Using a smoothing coefficient of W = 0.50, exponentially smooth the series and plot the results.
d. What is your exponentially smoothed forecast for 2012?
e. Repeat (c) and (d), using W = 0.25.
f. Compare the results of (d) and (e).

Transcribed Image Text:

Year 2004 2005 2006 2007 2008 2009 2010 2011 Retail Price (e/kg) 8.60 8.53 8.32 8.23 8.58 8.45 8.60