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A large Portland manufacturer wants to forecast demand for a piece of pollution-control equipment. A review of past sales ( At ), as shown below,

A large Portland manufacturer wants to forecast demand for a piece of pollution-control equipment. A review of past sales

(At),

as shown below, indicates that an increasing trend is present.Smoothing constants are assigned the values of

=

0.20

and

=

0.4.

The firm assumes the initial forecast for month 1

(F1)

was

9.00

units and the trend over that period

T1

was

2.00

units.

Using trend-adjusted exponential smoothing, Forecasts

(Ft),

Trend

(Tt),

and Forecasts Including Trend

(FITt)

for months 1 through 4 have already been developed and are provided below. Continue with the process and determine

Ft,

Tt,

and

FITt

for months 5 and 6 (round your responses to two decimal places):

Month

(t)

Actual Demand

(At)

Forecast

(Ft)

Trend

(Tt)

Forecast Including Trend

(FITt)

1

10.0

9.00

2.00

11.00

2

17.0

10.80

1.92

12.72

3

23.0

13.58

2.26

15.84

4

18.0

17.27

2.83

20.10

5

22.0

?

?

?

6

21.0

?

?

?

7

31.0

?

?

?

8

28.0

?

?

?

9

36.0

?

?

?

10

?

?

?

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