The price of bananas fluctuates on the world market. The prices ($/tonne) for the years 1999-2003 are shown in the table.a) Find a 4-year moving average prediction for the price in 2004.b) Find a prediction for 2004 with an exponential smoothing model with a = 0.3, beginning with the initial value.c) The actual price of bananas in 2004 was 483 $/tonne. Compute the absolute percentage error for each prediction.a) $/tonne(Round to two decimal places as needed.)C1999401.882000634.782001478.932002443.442003526.58

The banana price for the corresponding year is given as follows:YearPrice (in $/tonne)1999401.882000634.782001478.932002443.442003526.58Part (a)The 4-year moving average for the banana price is obtained as the average sales prices of the last four price prices prior to the year 2004, i.e.,F2004=Actual Price2003+Actual price2002+Actual price2001+Actual price20004=526.58+443.44+478.93+634.784=520.93Part (b)Considering Ft as the current year estimated price, At as the current year actual price, and α as the smoothing constant, the estimated price for the next year, Ft+1=Ft+α(At−Ft).As the estimated price for the initial period, F1999 is not given considering F1999=A1999, and the smoothing constant value of α=0.3, the predicted prices are given as follows:Year; tPrice (in $/tonne); At Predicted price; Ft+1=Ft+0.3(At−Ft)1999401.88401.88 [=401.88]2000634.78401.88 [=401.88+(0.3×(401.88−401.88))]2001478.93471.75 [=478.93+(0.3×(634.78−401.88))]2002443.44473.9042003526.58464.7648 2004...483.30936Part (c)The actual price of bananas for the year 2004, i.e., A2004=483.The absolute percentage error for the predicted price for the year 2004 using 4-years moving average is:([|A2004−F2004|A2004]×100)%=(|483−520.93|483)×100)%=7.853%The absolute percentage error for the predicted price for the year 2004 using exponential smoothing is:([|A2004−F2004|A2004]×100)%=(|483−483.3094|483)×100)%=0.064%(a) The predicted price for the year 2004 using the 4-year moving average method $520.93 per tonne.(b) The predicted price for the year 2004 using the exponential smoothing method is $483.3094 per tonne. (c) The absolute percentage error for the predicted price for the year 2004 using 4-years moving average is 7.853%. The absolute percentage error for the predicted price for the year 2004 using exponential smoothing is 0.064%.