• • • 4.19 Income at the architectural firm Spraggins and Yunes for the period February to July was as follows:

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. (MyLab Operations Management also includes a shorter (brief) version of this problem.)

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MONTH Income (in $ thousand) FEBRUARY MARCH APRIL MAY JUNE JULY 70.0 68.5 64.8 71.7 71.3 72.8