Carol Campus, owner of Campus Carpet Cleaning (CCC) needs a quarterly forecast of the

number of customers expected next year. Listed below are the quarterly demands for CCC

for the past four years. Using exponential smoothing, develop an appropriate forecasting

model that minimizes MSD and then forecast the next year (2019) by quarter using this

model.

Assume exponential smoothing to be 0.2 and 0.8

Year 2016 Quarter 2015 2017 2018 2019 1 50 75 100 110 ? 2 340 375 550 700 ? 3 525 600 800 1050 ? 4 100 175 275 250