Martin Guenther, the manager of Lloyd€™s Savings Bank (fictitious) in Hamburg, Germany, wants to forecast the number of new checking accounts that will be opened in the next 2 months. He has data for the past 12 months on new checking accounts opened, which is shown in the following table:

1. Forecast the number of new checking accounts that will be opened in month 13 using trend-adjusted exponential smoothing with α = 0.4 and β = 0.5. Assume that the forecast for month 2 (F₂) is the naïve forecast and the trend factor for month 2 is T₂ = 0.

2. Forecast the number of new checking accounts that will be opened in month 13 using a linear trend equation.

3. Which of the two forecasting methods is more accurate? Use the MAPE to answer the question.

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Month 3 10 11 12 New Checking Accounts 252 255 295 120 144 178 228 245 262 277 282 290 46