The following time series shows the sales of a particular product over the past 12 months.MonthSales1105213531204105590612071458140910010801110012110 (a)Use ? = 0.4 to compute the exponential smoothing values for the time series. (Round your answers to two decimal places.)Month tTime Series ValueYtForecast Ft1105 2135 3120 4105 590 6120 7145 8140 9100 1080 11100 12110 (b)Use a smoothing constant of ? = 0.6 to compute the exponential smoothing forecasts. (Round your answers to two decimal places.) Month tTime Series ValueYtForecast Ft1105 2135 3120 4105 590 6120 7145 8140 9100 1080 11100 12110

Answered: The following time series shows the…

The following time series shows the sales of a particular product over the past 12 months. Month Sales 1 105 2 135 3 120 4 105 5 90 6 120 7 145 8 140 9 100 10 80 11 100 12 110

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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Concept explainers

Forecasting in Business

Forecasting is the process of predicting the future based on the past and the present data and circumstances. In other words, forecasting is the act of making a detailed analysis of future events based on the decisions made in the past as well as the present. Forecasting plays a very important role in operational management as it helps in planning and decision-making. It is not only important for the success of a business but also contributes to individual growth and success. Many business organizations or companies have failed due to the shortcomings of their forecasting.

Question

100%

The following time series shows the sales of a particular product over the past 12 months.

Month	Sales
1	105
2	135
3	120
4	105
5	90
6	120
7	145
8	140
9	100
10	80
11	100
12	110

(a)Use ? = 0.4 to compute the exponential smoothing values for the time series. (Round your answers to two decimal places.)

Month t	Time Series Value Y_t	Forecast F_t
1	105
2	135
3	120
4	105
5	90
6	120
7	145
8	140
9	100
10	80
11	100
12	110

(b)Use a smoothing constant of ? = 0.6 to compute the exponential smoothing forecasts. (Round your answers to two decimal places.)

Month t	Time Series Value Y_t	Forecast F_t
1	105
2	135
3	120
4	105
5	90
6	120
7	145
8	140
9	100
10	80
11	100
12	110

Leveraging special tenchniques in analyzing historical data to predict future trends. Forecasting covers the methods and types of forecasting and their application to case studies.

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