With tax revenues declining in many states, school districts have been searching for methods of cutting costs without affecting classroom academics. One district has been looking at the cost of extracurricular activities ranging from band trips to athletics. The district business manager has gathered the past six months’ costs for these activities as shown here.

110 105 100 95 90 Jun-

05 Jul-

05 Aug-

05 Sep-

05 Oct-

05 Nov-

05 Dec-

05 Jan-

06 Feb-

06 Mar-

06 Apr-

06 May-

06 Jun-

06 Retail Forward Future Spending IndexTM

(December 2005  100)

99.1 102.8 103.5 104.6 94.0 96.8 97.3 99.7 99.6 101.6 107.5 95.9 101.3 Month Expenditures ($)

September 23,586.41 October 23,539.22 November 23,442.06 December 23,988.71 January 23,727.13 February 23,799.69 Using this past history, prepare a single exponential smoothing forecast for March using an  value of 0.25.