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An electronic department store has experienced weekly demand of TVs of D1 = 100, D2 = 107, D3 = 94, and D4 = 102 over
An electronic department store has experienced weekly demand of TVs of D1 = 100, D2 = 107, D3 = 94, and D4 = 102 over the past four weeks. Given alpha (the smoothing constant for the level) = 0.1, beta (the smoothing constant for the trend) = 0.2, and using linear regression, the deseasonalized demand for any Period t is given by: Dt = 100.75 + 6 t , *** Using Trend-Corrected Exponential Smoothing (Holts Model), What is the forecast error for Period 1, E1?
a. 5.25
b. 6.75
c. 0.75
d. 0.00
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