Sedan Inc. produces modern kitchen faucets for style and innovation. Its faucets are famous for their user-centric features and ingenious details that make all the difference. Recently, the return rate on defective products is larger than normal resulting into management being concerned over rising expenses. To address this issue, Emily Yong, the financial manager, decides to examine various forecasting methods and then utilize the best one for forecasting quarterly expenses for 2019.

For the previous three years, the relevant quarterly data are given below:

2016 Return 2017 Return 2018 Return Quarter Expenses Quarter Expenses Quarter Expenses $ 12, 800 $ 13, 300 $ 13 , 800 11, 600 12, 500 12, 800 AWNP AWNP 11, 900 12, 100 12, 600 14, 100 14,500 15, 200