=10.33. Reconsider Problem 10.32. The economy is beginning to boom so the management of Transcontinental Airlines is predicting that the number of people flying will steadily increase this year over the relatively flat (seasonally adjusted) level of last year. Since the forecasting methods considered in Problem 10.32 are relatively slow in adjusting to such a trend, consideration is being given to switching to exponential smoothing with trend.

Subsequently, as the year goes on, management’s prediction proves to be true. The following table shows the corresponding average number of passengers in each month of the new year.