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

Month	Income (in $1000)
Feb	72.0
Mar	70.5
Apr	66.8
May	70.5
Jun	70.1
Jul	70.8

a) Use trend-adjusted exponential smoothing to forecast the firms August income. Assume that the initial forecast average for February is $67,000 and the initial trend adjustment is 0. The smoothing constants selected are = 0.2 and = 0.4.

b) Resolve part (a) with = 0.4 and = 0.8.

c) Determine which smoothing constants provide a better forecast using MAD, MSE, and MAPE.

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