2 Vidhya Balan is planning to liquidate her investments in mutual funds and invest in real estate. Before making the change to her investment strategy, Vidhya wants to forecast the price of mutual funds for the next 2 months. She has collected the following data on the average fund prices for the past 10 months. Month Average Fund Price 1 55.1 2 53.8 3 53.4 4 52.95 5 52.15 6 52.75 7 52.65 8 51.5 9 52.25 10 51.7 a Using a five-period moving average, forecast the average fund price for Period 11. b. Using exponential smoothing with α = 0.3 forecast the average fund price for Period 11. Assume an initial forecast for Month 2 (F2) as 55.10
2 Vidhya Balan is planning to liquidate her investments in
mutual funds and invest in real estate. Before making
the change to her investment strategy, Vidhya wants to
She has collected the following data on the average fund
prices for the past 10 months.
Month Average
Fund Price
1 55.1
2 53.8
3 53.4
4 52.95
5 52.15
6 52.75
7 52.65
8 51.5
9 52.25
10 51.7
a Using a five-period moving average, forecast the
average fund price for Period 11.
b. Using exponential smoothing with α = 0.3 forecast
the average fund price for Period 11. Assume an initial
forecast for Month 2 (F2) as 55.10
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