Use trend-adjusted exponential smoothing to forecast the firm’s August income. Assume that the initial forecast average for February is $65,000 and the initial trend adjustment is 0. The smoothing constants selected are a = .1 and b = .2. I found this table with the answer but I couldn't solve the August on my own. Can anyone show me how to get the month of august only?
Use trend-adjusted exponential smoothing to forecast the firm’s August income. Assume that the initial forecast average for February is $65,000 and the initial trend adjustment is 0. The smoothing constants selected are a = .1 and b = .2. I found this table with the answer but I couldn't solve the August on my own. Can anyone show me how to get the month of august only?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter7: Nonlinear Optimization Models
Section: Chapter Questions
Problem 56P
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Use trend-adjusted exponential smoothing to
I found this table with the answer but I couldn't solve the August on my own. Can anyone show me how to get the month of august only?
Transcribed Image Text:Income( in $
thousands)
Forecast Including
trend (FIT)
Forecast at
Months
Trend at time t (Tt)
time t (Ft)
A(t)
Feb
70
65.00
0.00
65.00
Mar
68.5
65.50
0.10
65.60
Apr
64.5
65.95
0.17
66.12
May
71.7
65.96
0.14
66.10
Jun
71.3
66.66
0.25
66.91
Jul
72.8
67.35
0.34
67.68
Aug
68.19
0.44
68.63
August Income is $68630
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