Lenovo uses the ZX-81 chip in some of its laptop computers. The prices for the chip during the last 12 months were as follows:

Month Price Per Chip Month Price Per Chip
January $1.90 July $1.80
February $1.61 August $1.83
March $1.60 September $1.60
April $1.85 October $1.57
May $1.90 November $1.62
June $1.95 December $1.75

This exercise contains only part d.

With a = 0.1 and the initial forecast for October of $1.83, using exponential smoothing, the forecast for periods 11 and 12 is:


Month Oct Nov Dec
Forecast 1.83