The Sample Hotel uses the simplest time series approach for forecasting monthly revenues. The

current year$$s revenues by department are multiplied by $1+$ x percent to forecast the next year$$s

revenues. The current year$$s department revenues for January and percentage increases for the

coming year are provided below.

Q: Calculate monthly forecasted revenues by department below:

Department $20$x$1$ revenues Percentage Increase $20$x$2$ Forecasted Revenues

Rooms $$192,0005\%$

Food $45,5003\%$

Beverage $18,2004\%$

Telecommunications $9,4002\%$

$2.$ The Aleidon Middle School forecasts its lunch meals using the exponential smoothing method

discussed in this chapter. The recent results and forecasts have been as follows:

Forecast Actual Demand

Day $1300320$

Day $2310330$

Q: Determine the smoothing constant.

Q: Provide the forecast of lunch meals for Day $3.$