A large Portland manufacturer wants to forecast demand for a piece of pollution-control equipment. A review of pastsales (A+), as shown below, indicates that an increasing trend is present. Smoothing constants are assigned thevalues of a = 0.20 and ß = 0.4. The firm assumes the initial forecast for month 1 (F₁) was 9.00 units and the trendover that period T, was 2.00 units.Using trend-adjusted exponential smoothing, Forecasts (F.), Trend (T₂), and Forecasts Including Trend (FIT.) formonths 1 through 4 have already been developed and are provided below. Continue with the process and determineFt, T₁, and FIT, for months 5 and 6 (round your responses to two decimal places):Month(t)12234440556819710Actual Demand(A₂)10.016.023.020.025.022.030.026.038.0Forecast(Ft)9.0010.8013.3817.05Trend(T₂)2.001.922.182.78Forecast IncludingTrend (FIT)11.0012.7215.5619.83

A forecasting technique called "Trend-Adjusted Exponential Smoothing" is used to make predictions…

A large Portland manufacturer wants to forecast demand for a piece of pollution-control equipment. A review of past sales (A₂), as shown below, indicates that an increasing trend is present. Smoothing constants are assigned the values of α = 0.20 and ß = 0.4. The firm assumes the initial forecast for month 1 (F₁) was 9.00 units and the trend over that period T, was 2.00 units. Using trend-adjusted exponential smoothing, Forecasts (F₂), Trend (T₂), and Forecasts Including Trend (F/T.) for months 1 through 4 have already been developed and are provided below. Continue with the process and determine F₁, T., and FIT, for months 5 and 6 (round your responses to two decimal places): Month (1) 1 2 3 4 5 6929 7 8 10 Actual Demand (A₂) 10.0 16.0 23.0 20.0 25.0 22.0 30.0 26.0 38.0 Forecast (F₂) 9.00 10.80 13.38 17.05 Trend (T₂) 2.00 1.92 2.18 2.78 Forecast Including Trend (FIT₂) 11.00 12.72 15.56 19.83

A large Portland manufacturer wants to forecast demand for a piece of pollution-control equipment. A review of past sales (A₂), as shown below, indicates that an increasing trend is present. Smoothing constants are assigned the values of α = 0.20 and ß = 0.4. The firm assumes the initial forecast for month 1 (F₁) was 9.00 units and the trend over that period T, was 2.00 units. Using trend-adjusted exponential smoothing, Forecasts (F₂), Trend (T₂), and Forecasts Including Trend (F/T.) for months 1 through 4 have already been developed and are provided below. Continue with the process and determine F₁, T., and FIT, for months 5 and 6 (round your responses to two decimal places): Month (1) 1 2 3 4 5 6929 7 8 10 Actual Demand (A₂) 10.0 16.0 23.0 20.0 25.0 22.0 30.0 26.0 38.0 Forecast (F₂) 9.00 10.80 13.38 17.05 Trend (T₂) 2.00 1.92 2.18 2.78 Forecast Including Trend (FIT₂) 11.00 12.72 15.56 19.83

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter13: Regression And Forecasting Models

Section13.7: Exponential Smoothing Models

Problem 26P: The file P13_26.xlsx contains the monthly number of airline tickets sold by the CareFree Travel...

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