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A supermarket chain (FRESHM) is interested in exploring vegetable sales profile over time, in order to make projection of sales three months ahead. Sales data were collected over the last 25 months:

2. Use the Holts approach.

1. Determine the best value of alpha and gamma. Show your work on a spreadsheet.
2. Use L₂₅ andT₂₅ from the template of the model you obtained in question 5 to calculate the forecast for months 26, 27, and 28. If you could not get the optimal alpha and gamma, use instead alpha = 0.8 and gamma = 0.2 to obtain L₂₅ and T₂₅, and now calculate the requested forecasts. Show your calculations.
3. As a matter of policy, management will approve borrowing up to a total of $2,000,000 a month (which, in our data set, will be a value of 2000 since the data appear in thousands). For next month (month 26), how confident can management be that all the demand will be met (that is predicted sales will not exceed $2,000,000)? You can use trial and error, or goal seek with the template.

Month	Sales in 1000$
1	1156
2	1101
3	1195
4	1072
5	1237
6	1106
7	1148
8	1005
9	1350
10	1115
11	1196
12	1298
13	1260
14	1264
15	1235
16	1357
17	1373
18	1358
19	1489
20	1428
21	1516
22	1681
23	1598
24	1699
25	1781