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Forecasting Question

Your manager is trying to determine what forecasting method to use. Based upon the following historical data, calculate the following forecast and specify what procedure you would utilize.

Month Actual Demand Month Actual Demand

1 62 7 76

2 65 8 78

3 67 9 78

4 68 10 80

Calculate the exponential smoothing with tend component forecast for periods 2-12 using an initial trend forecast (T1) of 1.8, and initial exponential smoothing forecast (F1) of 60, an Alpha of .30 and a delta of .30.

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