Could you also post the steps so I will know how to work thi

Could you also post the steps so I will know how to work this on a test? thanks!

The CEO of a manufacturing firm is concerned about the increase in cost of raw materials that has been observed the last several years. The following figures provide a time series of the cost of materials per unit for the firm’s primary product.

a. What pattern exists in the data?

b. Use Holt’s linear exponential smoothing with alpha=0.2, beta=0.3 to create a fore cast for the cost/unit in year 5.

Solution