The file Audits contains the number of audits of corporations with assets of more than $250 million conducted by the Internal Revenue Service. (Data extracted from www.irs.gov.)

a. Plot the data.

b. Fit a three-year moving average to the data and plot the results.

c. Using a smoothing coefficient of W = 0.50, exponentially smooth the series and plot the results.

d. What is your exponentially smoothed forecast for 2014?

e. Repeat (c) and (d), using a smoothing coefficient of W = 0.25.

f. Compare the results of (d) and (e).

g. What conclusions can you reach concerning the number of audits of corporations with assets of more than $250 million conducted by the Internal Revenue Service?