Anyone who wishes to register for a new vehicle in Singapore must first obtain a Certificate of Entitlement (COE). The COE represents a right to vehicle ownership and use of the limited road space for 10 years. Table 4-1 shows the 2019 - 2020 COE price for Category B, which is for cars above 1600cc.

 Compute the forecasted COE price for the July 2020 using 3-Month and 4-Month Moving Average. (8 marks) 

 

(b) Compare the two (2) forecasting methods and discuss which forecasting method is preferred, based on actual and forecasted COE prices from November 2019 to June 2020. Show your workings. (7 marks) 

 

(c) Illustrate how forecasting techniques could be used by the authority to aid their decision making in managing the COVID-19 outbreak in the community. [Note: This question is independent of Question 4(a) and Question 

Table 4-1 2019 COE Price ($) 2020 COE Price (S) July 39936 January 37109 August 40001 February 30890 September 36001 March 32801 October 41361 April 30008 November 40009 May 31186 December 36000 June 30808