The U.S. trade deficit with Canada (billions of dollars) from 1997 through 2004 is reported as shown in the table.
Using exponential smoothing and the smoothing constant α = 0.7, what deficit would have been forecast for 2005?
|
Year:
|
1997
|
1998
|
1999
|
2000
|
2001
|
2002
|
2003
|
2004
|
|
Deficit:
|
$15.5
|
16.6
|
32.1
|
51.9
|
52.8
|
48.2
|
51.7
|
66.5
|