Consider the demand data in the table below:

t 1 2 3 4 5 6 Yt 35 50 60 72 83 90 We want to apply exponential smoothing with trend:

• Using a fit sample of size 3, initialize the smoother using linear regression.

• Choose smoothing coefficients and evaluate MAPE and RMSE on the test sample.

• After observing demand in the last time bucket, calculate forecasts with horizons h = 2 and h = 3.