Use the Holt's approach 1 Determine the best value of alpha and gamma, for the MAE criterion 2 For the model you obtained in question '5' using the optimal alpha and gamma, you should get L 25 1766 89, and T 25 66 88 Which statement is correct a The local slope is L 25 T 25 1766 89 66 88 26 42 b The intercept (namely, the time series at t 0) is estimated to be 1766 89 as of t 25 c The average slope at t 25 is 66 88 25 d At t 25 the monthly loan is estimated to rise by 66880 dollars per month 3 Use L 25 1766 89 and T 25 66 88 from the template of the model you obtained in question '5' to calculate the forecast of loans for months 26, 27, and 28 Show your calculations As a matter of policy, management will approve borrowing up to a total of $1,900,000 for next month (month 26) How confident can management be that this loan amount will be sufficient to purchase the merchandise required that month You can use trial and error, or goal seek with the template

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Use the Holt's approach. 1.Determine the best value of alpha and gamma, for the MAE criterion. 2.For the model you obtained in question '5' using

Use the Holt's approach.

1.Determine the best value of alpha and gamma, for the MAE criterion.

2.For the model you obtained in question '5' using the optimal alpha and gamma, you should get L₂₅=1766.89, and T₂₅ =66.88.Which statement is correct?

a.The local slope is L₂₅/T₂₅ = 1766.89/66.88 = 26.42

b.The intercept (namely, the time series at t=0) is estimated to be 1766.89 as of t=25

c.The average slope at t=25 is 66.88/25.

d.At t=25 the monthly loan is estimated to rise by 66880 dollars per month.

3.Use L₂₅=1766.89 andT₂₅ = 66.88 from the template of the model you obtained in question '5' to calculate the forecast of loans for months 26, 27, and 28.

Show your calculations.

As a matter of policy, management will approve borrowing up to a total of $1,900,000 for next month (month 26). How confident can management be that this loan amount will be sufficient to purchase the merchandise required that month? You can use trial and error, or goal seek with the template.