2- The business analyst for Ace Business Machines, Inc. wants to forecast this year’s demand for manual typewriters based on the following historical…

2- The business analyst for Ace Business Machines, Inc. wants to forecast this year’s demand for manual typewriters based on the following historical data:

Time Period            Demand

5 years ago      900

4 years ago      700

3 years ago      600

2 years ago      500

Last year          300

           A) What is the forecast for this year using a moving-average forecast based on the last three years?

B) What is the forecast for the next period using exponential smoothing method with a alpha  factor of 0.4  a = 0.4