Question: After plotting demand for four periods, a manager has concluded that a trend-adjusted exponential smoothing model is appropriate to predict future demand. The initial estimate

After plotting demand for four periods, a manager has concluded that a trend-adjusted exponential smoothing model is appropriate to predict future demand. The initial estimate of trend is based on the net chang.eof 30 for the three periods from I to 4, for an average of +10 units. Use ex = .5 and 13 = .4, and TAF of 250 for period 5. Develop forecasts for periods 6 through 10.

t Period At Actual

1 210

2 224

3 229

4 240

5 255

6 265

7 272

8 285

9 294

10

With given information and using trend-adjusted exponential smoothing model, what is the trend estimate Tt for period 7?

10

10.5

11

11.5

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