Using trend-adjusted exponential smoothing, Forecasts (F₂), Trend (T₂), and Forecasts Including Trend (FIT) for months 1 through 4 have already been developed and are provided below. Continue with the process and determine F₁, T₁, and FIT, for months! and 6 (round your responses to two decimal places): D

Practical Management Science
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Author:WINSTON, Wayne L.
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Chapter2: Introduction To Spreadsheet Modeling
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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 (Ft), Trend (T₂), and Forecasts Including Trend (FIT) for months 1 through 4 have already been developed and are provided below. Continue with
the process and determine F, Tt, and FIT, for months 5 and 6 (round your responses to two decimal places):
Month
(t)
1
2
3
4
5
6
7
8
9
10
Actual Demand
(A₂)
10.0
18.0
24.0
20.0
22.0
21.0
32.0
28.0
35.0
Forecast
(F₂)
9.00
10.80
13.78
17.70
Trend
(T₂)
2.00
1.92
2.34
2.97
Forecast Including
Trend (FIT₂)
11.00
12.72
16.12
20.67
Transcribed Image Text: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 (Ft), Trend (T₂), and Forecasts Including Trend (FIT) for months 1 through 4 have already been developed and are provided below. Continue with the process and determine F, Tt, and FIT, for months 5 and 6 (round your responses to two decimal places): Month (t) 1 2 3 4 5 6 7 8 9 10 Actual Demand (A₂) 10.0 18.0 24.0 20.0 22.0 21.0 32.0 28.0 35.0 Forecast (F₂) 9.00 10.80 13.78 17.70 Trend (T₂) 2.00 1.92 2.34 2.97 Forecast Including Trend (FIT₂) 11.00 12.72 16.12 20.67
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