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Monthly demand data at Home Depot for Christmas trees are as follows: 1) Use simple exponential smoothing to estimate demand for Period #13. For this
Monthly demand data at Home Depot for Christmas trees are as follows:
1) Use simple exponential smoothing to estimate demand for Period #13. For this model, use alpha=0.35 and the level at Period 0 L0 = 2,655.
2) Use Holts model to estimate demand for Period #13. For this model, use alpha = 0.05, beta = 0.10, the level at Period 0 L0 = 1962, and the trend in Period 0 T0 = 106.7 (both L0 and T0 are obtained using regression).
3) Which of the two methods do you prefer? Why?
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Period 1 2 3 4 5 6 7 8 9 10 11 12 Demand (units) 2000 2113 2287 2445 2558 2648 2755 2820 2915 3008 3107 3208Step by Step Solution
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