The yearly closing prices of Abbott Laboratories stock are shown in the table below.
a. Use exponential smoothing with w = .8 to forecast the 2016 and 2017 closing prices. If you buy at the end of 2015 and sell at the end of 2017, what is your expected gain (loss)?
b. Repeat part a using Holt's method with w = .8 and v = .5.
c. In which forecast do you have more confidence? Explain.

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Year Closing Price Year Closing Price 1995 1996 1997 1998 48.71 56.15 53.37 53.99 41.05 50.75 65.50 49.00 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 1999 2000 2001 2002 2003 2004 36.31 48.44 55.75 40.00 46.60 46.65 39.43 47.91 56.23 65.50 38.33 45.02 44.91 2005