You work at the private wealth management department of an investment bank. You are asked to generate demand forecasts for one of the popular investment advisory services. The demand data for the past three months are as follows:

Month Demand (number of customers)

1 2050

2 2150

3 2200

11. Suppose you are using the single exponential smoothing forecasting technique with ???????? = ????????. ???????? to generate forecasts. Assume that the forecast for month 1 is 2000. What would be your forecast for month 4? If your answer is not an integer, provide at least three decimal places, e.g., 7.500.

12. Suppose you are using the double exponential smoothing forecasting technique with ???????? = ????????. ???????? and ???????? = ????????. ???????? to generate forecasts. Assume that the forecasts for level and trend for month 1, ???????????????? = ???????????????????????????????? and ???????????????? = ????????????????. What would be your forecast for month 4? If your answer is not an integer, provide at least three decimal places, e.g., 7.500.

13. Among the following forecasting techniques, which one will be the MOST suitable technique for forecasting demand in Month 4?

a. Naïve method b. Simple Average c. Simple Moving Average d. Linear Regression