ABC company is interested in forecasting quarterly sales for year 2017 for one of its products. Based on past 3 years of quarterly sales data (2014, 2015, and 2016), two forecasting methods look promising:

1. Exponential smoothing with seasonality with α = 0.5.

2. Holt’s method with seasonality with α = β = 0.3.

The seasonality indices have been computed as 0.93, 0.9, 0.99, and 1.18 for quarters 1, 2, 3, and 4, respectively. The actual demand for the last quarter (quarter 4 of 2016) was 9650. You are also given the following data for the last quarter for the two methods:

• For exponential smoothing, the deseasonalized forecast was 7795.

• For Holt’s method, the forecasts of level and trend were 7778 and 80, respectively.

Determine the actual forecasts for quarters 1, 2, 3, and 4 for the year 2017 by both methods.

NOTE: You can round off the solutions to the nearest integers.