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

A large Quebec 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

=0.2

and

=0.4.

The firm assumes the initial forecast for month 1

(F1)

was

13.00

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

14.0

13.00

2.00

15.00

2

18.0

14.80

1.92

16.72

3

24.0

16.98

2.02

19.00

4

18.0

20.00

2.42

22.42

5

24.0

enter your response here

enter your response here

enter your response here

6

22.0

enter your response here

enter your response here

enter your response here

7

30.0

8

28.0

9

38.0

10

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