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Forecasting

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A company uses exponential smoothing with trend to forecast monthly sales of its product, which show a trend pattern.
At the end of week 5, the company wants to forecast sales for week 6. The trend through week 4 has been twenty additional cases sold per week.
Average sales have been eighty-five cases per week. The demand for week 5 was ninety cases. The company uses ? = 0.20 and ? = 0.10. Make a forecast including trend for week 6.

The smoothing of the level of the series is .

The smoothing of the trend is .

The forecast including the trend is .

(Round your answers to 1 decimal

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Solution Summary

The solution illustrates a forecasting problem using exponential smoothing.

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Solution

It is given that,
T4 = 20, A5 = 90, S4 = 85,  = 0.20,  = 0.10

Step 1:

Smoothing the level of the ...

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