Q1

A manufacturer has seen demand for its latest smart watch increase
over the past six months. Observed demand has been D1 - 8,415, D2 -
8,732, D3 - 9,014, D4 - 9,808, D5 - 10,413, and D6 - 11,961. Forecast
demand for Period 7 using trend-corrected exponential smoothing with
(holt’s method) alpha = 0.2 & Beta = 0.3. (Page 191)
Ans – Q1
t Dt Level Trend Forecast Error
0 7367 673
alpha = 0.2 1 8415 8115 695.5 8040 -375
Beta = 0.3 2 8732 8794.8 690.79 8810.5
3 9014 9391.272 662.4946 9485.59
4 9808 10004.61 647.7486 10053.77
5 10413 10604.49 633.3869 10652.36
6 11961 11382.5 676.7743 11237.88
7 12059.28
Q1 - Formulae