Use Holt’s method to create a model that minimizes the MSE for the data set. Use Solver to determine the optimal values of α and β.

a. What are the optimal values of α and β?

b. Prepare a line graph comparing the predictions from Holt’s method against the original data.

c. What are the forecasts for each of the first six months in 2006 using this technique?

d. Calculate multiplicative seasonal indices for each month using the results of Holt’s method.

e. Use these seasonal indices to compute seasonal forecasts for each of the first six months in 2006.

f. Calculate additive seasonal indices for each month using the results of Holt’s method.

g. Use these seasonal indices to compute seasonal forecasts for each of the first six months in 2006.