Managerial Economics: Applications, Strategy and Tactics 12th Edition by James McGuigan, Charles Moyer, Frederick Harris

Exercise 1

One of the most important variables that must be forecasted accurately to project the cost of single-family home construction is the price of Southern pine framing lumber. Use the following data to forecast two- and four-year-ahead lumber prices. Compare the forecast accuracy of at least two alternative forecasting methods.
LUMBER PRICE INDEX
Data are available as an Excel file on the book's Web site. Source: Forest Product Market Prices and Statistics, Annual Yearbooks (Eugene, OR: Randon Length Productions), various issues.