Income at the architectural firm Spraggins and Yunes for the period February to July was as follows:

MONTH FEBRUARY MARCH APRIL MAY JUNE JULY Income

(in $ thousand) 70.0 68.5 64.8 71.7 71.3 72.8 Use trend-adjusted exponential smoothing to forecast the firm’s August income. Assume that the initial forecast average for February is $65,000 and the initial trend adjustment is 0. The smoothing constants selected are a = .1 and b = .2 Resolve Problem 4.19 with a = .1 and b = .8. Using MSE, determine which smoothing constants provide a better forecast. LOP1