Income at the law firm Tevez and Messi for February to July was as follows (income is in $ thousands):
$$\begin{array} { | c | c | }
\hline \text { Month } & \text { Income } \
\hline \text { February } & 70 \
\hline \text { March } & 68.5 \
\hline \text { April } & 64.8 \
\hline \text { May } & 71.7 \
\hline \text { June } & 71.3 \
\hline \text { July } & 72.8 \
\hline
\end{array}$$ Use trend-adjusted exponential smoothing to forecast the law firm's August income. Assume that the initial forecast for February is $65,000 and the initial trend adjustment is 0. The smoothing constants selected are α = 0.1 and β= 0.2.

Question

Income at the law firm Tevez and Messi for February to July was as follows (income is in $ thousands):
 $$\begin{array} { | c | c | } 
\hline \text { Month } & \text { Income } \
\hline \text { February } & 70 \
\hline \text { March } & 68.5 \
\hline \text { April } & 64.8 \
\hline \text { May } & 71.7 \
\hline \text { June } & 71.3 \
\hline \text { July } & 72.8 \
\hline
\end{array}$$ Use trend-adjusted exponential smoothing to forecast the law firm's August income. Assume that the initial forecast for February is $65,000 and the initial trend adjustment is 0. The smoothing constants selected are α = 0.1 and β= 0.2.

Quizplus · Accepted Answer

The Answer of Income at the law firm Tevez and Messi for February to July was as follows (income is in $ thousands):
 $$\begin{array} { | c | c | } 
\hline \text { Month } & \text { Income } \
\hline \text { February } & 70 \
\hline \text { March } & 68.5 \
\hline \text { April } & 64.8 \
\hline \text { May } & 71.7 \
\hline \text { June } & 71.3 \
\hline \text { July } & 72.8 \
\hline
\end{array}$$ Use trend-adjusted exponential smoothing to forecast the law firm's August income. Assume that the initial forecast for February is $65,000 and the initial trend adjustment is 0. The smoothing constants selected are α = 0.1 and β= 0.2.

Income at the Law Firm Tevez and Messi for February