Question: Holts method is used in obtaining forecasts for a product. The following table summarizes some of the information: Period t Dt St Gt Ft1,t et
Holts method is used in obtaining forecasts for a product. The following table summarizes some of the information: Period t Dt St Gt Ft1,t et 1 500 500 0 500 0 2 350 455 -4.5 500 -150 3 250 390.4 -10.5 450.5 -200.5 4 385.9 -9.9 5 450 376 74 6 350 378.3 -8.9 390.5 -40.5 7 200 318.6 -14 369.4 -169.4 MAD, as measured considering the seven periods, is 93.5. Using only one digit after the decimal point in your calculations should be sufficient. a) Use the above information to find smoothing constant values and . b) Fill in the missing values in the table (i.e., D4, F3,4, e4, S5 and G5). c) Assuming that D8 = 300, and using the same smoothing constants utilized in obtaining the above information, find a forecast for sum of demands in Period 9 and Period 10.
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