Question

# A large Portland manufacturer wants to forecast demand for a piece of​ pollution-control equipment. A review...

A large Portland manufacturer wants to forecast demand for a piece of​ pollution-control equipment. A review of past sales

​(Upper A Subscript tAt​),

as shown​ below, indicates that an increasing trend is present.  Smoothing constants are assigned the values of alphaα = 0.20 and betaβ = 0.4

The firm assumes the initial forecast for month 1 ​(Upper F 1F1​) was 11.00 units and the trend over that period Upper T 1T1 was 2.00 units.

Using​ trend-adjusted exponential​ smoothing, Forecasts (Upper F Subscript tFt​), Trend ​(Upper T Subscript tTt​), and Forecasts Including Trend ​(FIT Subscript tFITt​) for months 1 through 4 have already been developed and are provided below. Continue with the process and determine Upper F Subscript tFt​, Upper T Subscript tTt​, and FIT Subscript tFITt for months 5 and 6 ​(round your responses to two decimal​ places):

 Month ​(t​) Actual Demand ​(Upper A Subscript tAt​) Forecast ​(Upper F Subscript tFt​) Trend ​(Upper T Subscript tTt​) Forecast Including Trend ​(FIT Subscript tFITt​) 1 12.012.0 11.0011.00 2.002.00 13.0013.00 2 17.017.0 12.8012.80 1.921.92 14.7214.72 3 24.024.0 15.1815.18 2.102.10 17.2817.28 4 19.019.0 18.6218.62 2.642.64 21.2621.26 5 22.022.0 ? ? ? 6 23.023.0 ? ? ? 7 31.031.0 ? ? ? 8 26.026.0 ? ? ? 9 35.035.0 ? ? ? 10 ? ? ? ?

Find ''?''

 Alpha 0.2 Beta 0.4 t At Ft Tt F/Tt 4 19 18.62 2.64 21.26 5 22 20.808 2.4592 23.2672 6 23 23.01376 2.357824 25.37158 7 31 24.89727 2.168097 27.06536 8 26 27.85229 2.482868 30.33516 9 35 29.46813 2.136055 31.60418 10 ? 32.28335 2.407721 34.69107