1. The U.S. monthly inflation rate for 2021 and 2022 (until June) is shown below:

	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec
2021	1.4	1.7	2.6	4.2	5	5.4	5.4	5.3	5.4	6.2	6.8	7
2022	7.5	7.9	8.5	8.3	8.6	9.1

1. Using 3 month moving average method, forecast the inflation rates for 2022 January to June. (Use 2021 inflation rate values).
2. Assume that the inflation forecast for January 2021 was 1.4. Using Exponential smoothing method with =0.3, forecast the inflation rates for 2022 January to June.
3. Assume that the inflation forecast for January 2021 was 1.4. Using Exponential smoothing

method with =0.5, forecast the inflation rates for 2022 January to June.

4. Calculate the forecast error for each of the forecasting methods in (a), (b), and (c). What is the MAD for each of the forecasts generated? Which method is better?