Problem $2$: Wealth Management

You work at the private wealth management department of an investment bank. You are asked to generate demand forecasts for one of the popular investment advisory services. The demand data for the past three months are as follows:

Month

Demand $($number of customers$)$

$1$

$2050$

$2$

$2150$

$3$

$2200$

Flag question: Question $11$

Question $111$ pts

Suppose you are using the single exponential smoothing forecasting technique with

to generate forecasts. Assume that the forecast for month $1$ is $2000.$

What would be your forecast for month $4?$ If your answer is not an integer, provide at least three decimal places, e$.$g$.,7\mathrm{.}500.$

$2,174\mathrm{.}65$

Flag question: Question $12$

Question $121$ pts

Suppose you are using the double exponential smoothing forecasting technique with

and

to generate forecasts. Assume that the forecasts for level and trend for month $1,$

and

$.$

What would be your forecast for month $4?$ If your answer is not an integer, provide at least three decimal places, e$.$g$.,7\mathrm{.}500.$

$2,274\mathrm{.}117$

Flag question: Question $13$

Question $131$ pts

Among the following forecasting techniques, which one will be the MOST suitable technique for forecasting demand in Month $4?$

Group of answer choices

Na$$ve method

Simple Average

Simple Moving Average

Linear Regression