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    Calculate a forecast using a trend adjusted smoothing.

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    The business analyst for Ace Business Machines, Inc. wants to forecast this year's
    demand for manual typewriters based on the following historical data:

    TIME PERIOD-------DEMAND
    5 years ago---------------900
    4 years ago--------------- 700
    3 years ago--------------- 600
    2 years ago--------------- 500
    Last year---------------- 300

    What is the forecast for this year using trend adjusted (double) smoothing with alpha(1) = 0.3 and alpha(2) = 0.2, if the forecast for last year was 310, the forecast for two years ago was 430, and the trend estimate for last year's forecast was -150?

    * Please use 310, 430, -150 instead (if the forecast for last year was 310, the forecast for two years ago was 430, and the trend estimate for last year's forecast was -150).

    © BrainMass Inc. brainmass.com March 4, 2021, 5:43 pm ad1c9bdddf
    https://brainmass.com/business/business-math/calculate-forecast-trend-adjusted-smoothing-7515

    Solution Preview

    Let alpha 1 = A1 and alpha 2 = A2

    The basic formulas for double exponential smoothing are
    Bt= A2(St - St-1) + ...

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