A pharmaceutical company has recently introduced a new pain killer into the market. The pain killer is sold in boxes that include 24 pills. The sales of the pain killer in the last 16 weeks have been 11797, 6724, 15346, 12825, 15939, 9997, 13671, 21994, 17774, 14587, 11190, 18083, 25320, 15129, 17092, and 27652 boxes. a. Use Holt's method with smoothing constants a = 0.7 and 3 = 0.1 and develop a sales forecast for the next 2

College Algebra
1st Edition
ISBN:9781938168383
Author:Jay Abramson
Publisher:Jay Abramson
Chapter9: Sequences, Probability And Counting Theory
Section9.5: Counting Principles
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A pharmaceutical company has recently
introduced a new pain killer into the market.
The pain killer is sold in boxes that include
24 pills. The sales of the pain killer in the last
16 weeks have been 11797, 6724, 15346,
12825, 15939, 9997, 13671, 21994, 17774,
14587, 11190, 18083, 25320, 15129, 17092,
and 27652 boxes. a. Use Holt's method with
smoothing constants a = 0.7 and ß = 0.1
and develop a sales forecast for the next 2
weeks. b. Adjust the method and find the
best values for a and ß that result in the
least MSE. c. Use the method in part (b) to
develop point and 90-percent prediction
interval forecasts for the next 2 weeks' sales.
Transcribed Image Text:A pharmaceutical company has recently introduced a new pain killer into the market. The pain killer is sold in boxes that include 24 pills. The sales of the pain killer in the last 16 weeks have been 11797, 6724, 15346, 12825, 15939, 9997, 13671, 21994, 17774, 14587, 11190, 18083, 25320, 15129, 17092, and 27652 boxes. a. Use Holt's method with smoothing constants a = 0.7 and ß = 0.1 and develop a sales forecast for the next 2 weeks. b. Adjust the method and find the best values for a and ß that result in the least MSE. c. Use the method in part (b) to develop point and 90-percent prediction interval forecasts for the next 2 weeks' sales.
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