Question: Problem 1. The monthly sales data for the year 2011 for Datastream, Inc., which produces network routers for small companies, are given in Table 1.

Problem 1. The monthly sales data for the year

Problem 1. The monthly sales data for the year 2011 for Datastream, Inc., which produces network routers for small companies, are given in Table 1. The sales manager wants a forecast of sales for the first quarter of year 2012 (months 1315). Sales on the months from 13 to 15 are observed as 40, 42, 38, respectively. Compute the forecasts using the following methods: (a) Exponential smoothing with a =0.25 (6) Holt's method with a = 0.4 and B = 0.50. Table 1 Monthly Sales Data Month Sales 1 2 3 4 5 6 7 8 9 10 11 12 34 33 42 34 36 43 34 33 31 35 41

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