A popular brand of a tennis shoe has had the following demand history by quarters over a two-year period.

a) Determine the seasonal factors and the initial value of the intercept using data from Year 1 only.

b) Update the seasonal values and the intercept using the data from the second year using smoothing factors and for the intercept and seasonal factors, respectively.

c) Forecast the demand for each quarter of the third year.

Year 1 (Quarter) 1 2 3 Demand 12 25 76 52 Year 2 (Quarter) 1 2 3 4 Demand 16 32 71 62