Purchase Solution

# Calculate a forecast using a trend adjusted smoothing.

Not what you're looking for?

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).

##### Solution Summary

The solution is very detailed including the math and narrative to aid in fully understanding the problem.

##### Solution Preview

Let alpha 1 = A1 and alpha 2 = A2

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

##### Understanding Management

This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.

##### Accounting: Statement of Cash flows

This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.

##### Balance Sheet

The Fundamental Classified Balance Sheet. What to know to make it easy.

##### Operations Management

This quiz tests a student's knowledge about Operations Management

##### Introduction to Finance

This quiz test introductory finance topics.