Question: Table below shows the data on customer demand for the past 4 weeks: Mon Tue Wed Thu Week 1 1 5 0 1 7 8

Table below shows the data on customer demand for the past 4 weeks:
Mon Tue Wed Thu
Week 1150178210215
Week 2160220245262
Week 3190265274285
Week 4250276295302
a) What forecasting method is appropriate? Why?
b) Determine initial values of parameters required to initiate the model.
c) Assume that the observed demand for the first day of week 5 was 218. Using =0.2 and
=0.15, and =0.10, update the estimates of the series, the slope and the seasonal
factors.
d) What are the forecasts made at the end of the first day of week 5 for the remaining three
days of week 5?

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