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2.1 The planning team has provided you with the following information and requires you to use the exponential smoothing with trend adjustment technique to forecast
2.1 The planning team has provided you with the following information and requires you to use the exponential smoothing with trend adjustment technique to forecast deliveries for one of the Cadbury Schweppes subsidiaries for period 10. Let alpha =0.4, beta =0.2, and let the initial trend value be 4 and the initial forecast be 200 . (10 marks) 2.2 Cadbury Schweppes owns and operates a chain of 12 vegetable protein "hamburger" outlets in northern Louisiana. Sales figures and advertising expenses for the stores are provided in the table below. Sales are given in millions of dollars; advertising expenses are in tens of thousands of dollars. Calculate a regression line for the data. What is your forecast of sales for a store with advertising spending of R240,000? R300,000? (10 marks) \begin{tabular}{|l|l|l|l|l|l|l|l|l|l|l|l|l|} \hline Store & 1 & 2 & 3 & 4 & 5 & 6 & 7 & 8 & 9 & 10 & 11 & 12 \\ \hline Advertising & 14 & 11 & 15 & 16 & 24 & 28 & 22 & 21 & 26 & 43 & 34 & 9 \\ \hline Sales & 6 & 3 & 5 & 5 & 15 & 18 & 17 & 12 & 15 & 20 & 14 & 5 \\ \hline \end{tabular}
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