Alabama building contracts for a 12-month period (in millions of dollars) are 240, 350, 230, 260, 280, 320, 220, 310, 240, 310, 240, and 230.
a. Compare a 3-month moving average forecast with an exponential smoothing forecast using a = 0.2. Which provides the better forecasts?
b. What is the forecast for the next month?