Question
This is the data set: Year Sales 1 283 2 288 3 336 4 388 5 406 6 412 7 416 8 435 9 428
This is the data set:
| Year | Sales |
|---|---|
| 1 | 283 |
| 2 | 288 |
| 3 | 336 |
| 4 | 388 |
| 5 | 406 |
| 6 | 412 |
| 7 | 416 |
| 8 | 435 |
| 9 | 428 |
| 10 | 435 |
| 11 | 462 |
| 12 | 452 |
| 13 | 474 |
| 14 | 476 |
| 15 | 497 |
| 16 | 487 |
| 17 | 523 |
| 18 | 528 |
| 19 | 532 |
| 20 | 552 |
Use Holt's method to create a model that minimizes the MSE for the data set. Use Solver to determine the optimal values of a and .
a. What are the optimal values of a and ?
b. Prepare a line graph comparing the predictions from Holt's method versus the original data.
c. What are the forecasts for the next 2 years using this technique?
Please explain and show all steps of the process including excel, solver, etc.
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Research Methods for Business A Skill Building Approach
Authors: Uma Sekaran, Roger Bougie
7th edition
978-1-119-2668, 1119165555, 1119165552, 9781119266846, 111926684X, 978-1119165552
