Question

1. Suppose the following data represents total revenues (in $ millions) for a mining   company.

Year	Revenue	4-Year Moving Average	4 Weighted Moving Average Weights 4,3,2,1	Exponential smoothing          α = 0.6
2010	75
2011	81
2012	74
2013	79
2014	69
2015	92
2016	73
2017	85
2018	90
2019	73
2020 Forecast

        Use 2 decimal places,

1. Compute the 4-year moving averages and forecast the revenue for 2020. ( 4 marks)

2. Compute the 4-year weighted moving averages with weighs 4,3,2,1 and forecast the revenue for 2020. ( 4 marks)

3. Compute the exponentially smoothed values for the data using a smoothing coefficient α = 0.60. Calculate the forecast for 2020. ( 5 marks)

Answer 1