Question

Given the demand data and using alpha values of 0 and 0.5, compute a simple exponential smoothing forecast. Use the actual value in Period 1 as your starting forecast in Period 2. Please round all your calculations.

Answer 1

Using the linear regression model ŷ = 101.32 + 2.48x, where ŷ represents sales in thousands of dollars, the predicted sales on day 60 is 250.12 thousand dollars and on day 90 is 324.52 thousand dollars.

Step-by-step explanation:

The student's question seems to mix several different concepts together, including simple exponential smoothing forecasting in the context of time series analysis and linear regression predicting sales growth. However, based on the provided information, we are asked to provide forecasted sales on specific days using a simple linear regression model.To predict sales on day 60 using the linear regression model, we substitute x with 60 into the given equation ŷ = 101.32 + 2.48x. Therefore, ŷ = 101.32 + 2.48(60).To calculate: ŷ = 101.32 + 2.48(60)ŷ = 101.32 + 148.8ŷ = 250.12 (in thousands of dollars)The predicted sales on day 60 would therefore be 250.12 thousand dollars.To predict the sales on day 90, repeat the process:ŷ = 101.32 + 2.48(90)ŷ = 101.32 + 223.2ŷ = 324.52 (in thousands of dollars)The predicted sales on day 90 would be 324.52 thousand dollars.