1.Apply the Holt's model to the data used in problem 1 as follows:

1.1With alpha = 0.55, and gamma = 0.22 run the template to get L_25, andT₂₅.

Now show how the forecasts for t=26, 27, and 28 are found. Show your work by hand.

1.2As a matter of policy, management will approve requests for loans up to a total of

$2,000,000 a month (which, in our data set, will be a value of 2000 since the data appear in thousands). For each of the next three months find the largest confidence level possible, that will make it unlikely to have loan requests of more than 2 million dollars a month. You can use trial and error with the template, or goal seek.