4.19 - 4.20

Income at the architectural firm Spraggins and Yunes ...4.19 for the period February to July was as follows: MONTH FEBRUARY | MARCH | APRIL | MAY JUNE | JULY Income 70.0 68.5 64.8 71.7 71.3 72.8 (in $ thousand) 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 .1 and 2. 4.20 Resolve Problem 4.19 with . 1 and .8. Using MSE, determine which smoothing constants provide a better forecast. P