Question: Please do not forget the question about which forecasting method do you prefer? why? Consider monthly demand for the ABC Corporation as shown in Table.

Please do not forget the question about "which forecasting method do you prefer? why?"
Consider monthly demand for the ABC Corporation as shown in Table. Then, forecast the monthly demand for year 5 using Holt's Model under an optimal alpha and beta and the Seasonal with the trend or without trend models (You decide which Model fits the given data). In each case, evaluate MSE. Which forecasting method do you prefer? Why? Year 1 Year 2 Year 3 Year 4 Jan 2500 6300 9200 14300 Feb 3500 7300 12200 13300 Mar 3500 6300 12200 13300 Apr 3500 8300 10200 12400 May 4500 8300 11200 15900 Jun 6500 9300 13200 16300 Jul 7500 9200 14200 19300 Aug 6500 11300 17200 23300 Sep 10500 15300 22200 25300 Oct 12500 15300 22200 25300 Nov 14500 19300 25200 29300 Dec 8500 13300 15200 21300 Answer Holt's Model (15 points) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec MSE Which forecasting method do you prefer? Why? (10 points) Seasonal (15 points)Step by Step Solution
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