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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iven data

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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