Question

(a) The forecast for weeks 2 through 10 using exponential smoothing with α = 0.60 and a week 1 initial forecast of 21.0 are (round your responses to two decimal places).

(b) For the forecast

Answer 1

While there is no data provided to apply exponential smoothing, using the given regression equation, the sales on day 60 are predicted to be $250,120 and on day 90 to be $324,520.

Step-by-step explanation:

Exponential Smoothing and Predictive Models:

For day 60, the sales prediction would be:

1. Insert the value of x=60 into the regression equation to get ® = 101.32 + 2.48(60).
2. Calculate the result: ® = 101.32 + 148.8 = 250.12 (thousands of dollars).
3. Convert into actual dollars by multiplying by 1,000: Predicted sales = $250,120.

For day 90, by following the same steps:

1. Insert x=90 into the equation: ® = 101.32 + 2.48(90).
2. Calculate the result: ® = 101.32 + 223.2 = 324.52 (thousands of dollars).
3. Convert the prediction: Predicted sales = $324,520.