Question: Problem 2.4 (Forecasting with Seasonality) A hardware store sells potting soil, the demand for which is highly seasonal and has also exhibited a slight upward

Problem 2.4 (Forecasting with Seasonality) A

Problem 2.4 (Forecasting with Seasonality) A hardware store sells potting soil, the demand for which is highly seasonal and has also exhibited a slight upward trend. The number of bags of soil sold each month for the past 40 months is reported in the file potting-soil.xlsx. Using triple exponential smoothing with a = 0.2, p = 0.1, and y = 0.3, forecast the demand for May. Initialize your forecast by setting 1 =D S = 1,-1,-1 12D Ct = 2 D, for periods t = 1,...,12. (There are better ways to initialize this method, but this method is simpler.) Problem 2.4 (Forecasting with Seasonality) A hardware store sells potting soil, the demand for which is highly seasonal and has also exhibited a slight upward trend. The number of bags of soil sold each month for the past 40 months is reported in the file potting-soil.xlsx. Using triple exponential smoothing with a = 0.2, p = 0.1, and y = 0.3, forecast the demand for May. Initialize your forecast by setting 1 =D S = 1,-1,-1 12D Ct = 2 D, for periods t = 1,...,12. (There are better ways to initialize this method, but this method is simpler.)

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