Liquid assets. The Bank of New York Company was founded by Alexander Hamilton in 1784 and was a major commercial bank until its merger with the Mellon Financial Corporation in 2007. Their year-end financial reports for the final five years of independent operation give the following values for their liquid assets (Source: The Financial Times).
|
Year
|
Liquid Assets ($M)
|
|
2002
|
18,546
|
|
2003
|
22,364
|
|
2004
|
22,413
|
|
2005
|
19,881
|
|
2006
|
26,670
|
a) Use a 3-year moving average to predict what liquid assets would have been in 2007.
b) Predict the value for 2007 using a single exponential smooth with smoothing parameter a = 0.2.