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5.. The Miracle Corporation had the following sales during the past 10 years.

2003 200
2004 215
2005 237
2006 260
2007 278
2008 302
2009 320
2010 345
2011 360
2012 382

A. Calculate a trend line, and forecast sales for 2013. How confident are you in this forecast?

B. Use exponential smoothing with a smoothing factor w=0.7. What is your 2013 forecast? How confident are you in this forecast?

Microeconomics, Economics

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