Business Statistics

Chapter 16 | Time Series and Index Numbers 595

Year Expenses (in million rupees)

1994–1995 2376

1995–1996 2439.7

1996–1997 2686.1

1997–1998 1570.6

1998–1999 2681.4

1999–2000 3069

2000–2001 3481.8

2001–2002 3829.6

2002–2003 6705.7

Year Expenses (in million rupees)

2003–2004 5688.3

2004–2005 6366.2

2005–2006 7047.6

2006–2007 7299.3

Source: Prowess (V. 3.1), Centre for Monitoring Indian Economy P. Ltd, Mum-

bai, accessed December 2008, reproduced with permission.

16A4. Use exponential smoothing method with  = 0.6 to forecast

expenses for the data given in 14A3.

16A5. Use Holt’s two parameter technique with  = 0.8 and  = 0.5

to forecast expenses for the data ...