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Tesla is a world-leading manufacturer of electric cars. The Model 3 is Tesla's first car designed for the mass market. Table 1 shows the quarterly

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Tesla is a world-leading manufacturer of electric cars. The Model 3 is Tesla's first car designed for the mass market. Table 1 shows the quarterly production numbers of Model 3 since its launch. In order to estimate Tesla's profitability and growth potential, an analyst at an investment bank is tracking the data and aims to forecast the production of Model 3. Table 1 a) Assuming the analyst applies Double Exponential Smoothing (DES) with =0.8 and =0.4, what is the forecast for the production of Model 3 in 2019Q3 ? Note: is the smoothing parameter for the level estimate and is the smoothing parameter for the trend estimate. (15 marks) What is the forecast accuracy of the DES method adopted in part (a), as measured by Mean Absolute Percentage Error (MAPE)

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