A long-time independent bank merged with another bank in 2006. Their year-end financial reports for the final five years of independent operation give the values to the right for their liquid assets. a) Use a 3-year moving average to predict what liquid assets would have been in 2006. b) Predict the value for 2006 using a single exponential smooth with smoothing parameter α = 0.3, beginning with the initial value. $M (Round to the nearest integer as needed.) b) SM (Round to the nearest integer as needed.) Year 2001 2002 2003 2004 2005 Liquid Assets (SM) 17,328 22,220 21,034 20,660 26,162

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A long-time independent bank merged with
another bank in 2006. Their year-end financial
reports for the final five years of independent
operation give the values to the right for their
liquid assets.
a) Use a 3-year moving average to predict what
liquid assets would have been in 2006.
b) Predict the value for 2006 using a single
exponential smooth with smoothing parameter
α = 0.3, beginning with the initial value.
a)
$M
(Round to the nearest integer as needed.)
b) $M
(Round to the nearest integer as needed.)
Year Liquid Assets (SM)
2001
17,328
22,220
2002
2003
2004
2005
21,034
20,660
26,162
Transcribed Image Text:A long-time independent bank merged with another bank in 2006. Their year-end financial reports for the final five years of independent operation give the values to the right for their liquid assets. a) Use a 3-year moving average to predict what liquid assets would have been in 2006. b) Predict the value for 2006 using a single exponential smooth with smoothing parameter α = 0.3, beginning with the initial value. a) $M (Round to the nearest integer as needed.) b) $M (Round to the nearest integer as needed.) Year Liquid Assets (SM) 2001 17,328 22,220 2002 2003 2004 2005 21,034 20,660 26,162
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