1. Acomputer softwarefirmhasexperiencedthefollowing demandforitsPersonalFinance softwarepackage:

Period	Units
1	56
2	61
3	55
4	70
5	66
6	65
7	72
8	75

Developanexponentialsmoothingforecast,using=0.40,andanadjusted exponentialsmoothing forecast,using=0.40and=0.20.Compare theaccuracyofthetwo(2)forecastsusingMAD andcumulativeerror.

2. A local building products store has accumulated sales data for two-by-four lumber (in board feet)andthenumberofbuildingpermits initsareaforthepast10quarters:

Quarter	BuildingPermits,	Lumber Sales(1,000sofbd. ft.),
1	8	12.6
2	12	16.3
3	7	9.3
4	9	11.5
5	15	18.1
6	6	7.6
7	5	6.2
8	8	14.2
9	10	15.0
10	12	17.8

Develop a linear regression model for these data and determine the strength of the linearrelationship by using correlation. If the model appears to be relatively strong, determine theforecastfor lumber,given10building permitsinthenextquarter.