The following table contains the annual data for carbon dioxide (CO2) emissions in Canada over a 34-year period as published by the OECD.

a. Use a 3-year moving average to forecast the CO2 emissions for the years 1980 through 2010 for these data. Compute the error of each forecast and then determine the mean absolute deviation of error for the forecast.b. Use exponential smoothing and α = 0.2 to forecast the data from 1979 through 2010. Let the forecast for 1978 equal the actual value for 1977. Compute the error of each forecast and then determine the mean absolute deviation of error for the forecast.c. Compare the results obtained in parts (a) and (b) using MAD. Which technique seems to perform better? Why?

Transcribed Image Text:

CO₂ Emissions 1977 406 1983 385 1989 453 1995 461 2001 526 2007 569 from Energy Use in Canada (millions of tonnes) 1978 1980 1982 409 428 393 1984 1986 1988 402 394 437 1990 1992 1994 429 435 450 1996 1998 2000 476 498 533 2002 2004 2006 533 554 544 2008 2010 551 537 1979 423 1985 403 1991 423 1997 493 2003 557 2009 525 1981 411 1987 406 1993 435 1999 508 2005 559