Problem 3. Annual retirement assets (in billions of dollars) for two fund types from 2006 through 20

Problem 3. Annual retirement assets (in billions of dollars) for two fund
types from 2006 through
2010 are given in the table below.

Year

IRA

401(k)

2006

3,652

2,396

2007

4,207

2,768

2008

4,784

2,982

2009

3,759

2,275

2010

4,230

2,754

a.
Compute simple indexes for each of the two time
series using 2006 as the base period. 1pt
b.
Construct a time series plot for IRA index ONLY. 1 pt
c.
Use the Exponential smoothing and Holt’s trend with
coefficients of w=0.5 and u=0.6 to
forecast the assets in the IRA account for the year 2015. 2 pts