# John Taylor Salons wants to forecast monthly customer demand from June through Ausgust using...

## Question:

John Taylor Salons wants to forecast monthly customer demand from June through Ausgust using trend adjusted exponential smoothing. Given a=0.2, b=0.4, F{eq}_{May} {/eq}=45 and a T{eq}_{May} {/eq}=0, forecast a FIT for months June

month | Actual sales | Unadjusted F | Trend | Adjusted F |
---|---|---|---|---|

May | 50 | 45 | 0 | |

June | 61 | 46 | .4 | 64.4 |

July | 73 | 49 | 1.44 | 50.44 |

August | 80 | 53.8 | 2.78 | 56.58 |

Step 1 - unadjusted forecast Ft+1

Step 2 - trend Tt+1

Step 3 - add Ft+1 and Tt+1

## Forecasting Method:

The method of forecasting helps the organization in analyzing financial data for predicting future revenue. The different types of forecasting method 1) Judgmental Model 2) Time-Series Method 3) Causal Method. The judgemental method includes the Delphi method. Time Series Method includes moving average, exponential, and Seasonability methods. The casual method includes regression analysis.

## Answer and Explanation:

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a = 0.2

b = 0.4

{eq}\alpha = 0.2\\ \beta = 0.4\\ {/eq}

Trend adjusted exponential smoothing

{eq}F_{t} = \alpha(A_{t-1}) + (1-\alpha)...

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Chapter 13 / Lesson 1The weather can be forecasted using many different methods. Learn how to identify and describe the types of weather forecasting: persistence forecasting, synoptic forecasting, statistical forecasting, and computer forecasting.