**Problem 4.19**Income at the architectural firm Spraggins and Yunes for the period February to July was as follows:| Month | Income (in $ thousand) ||-------------|------------------------|| February | 70.0 || March | 68.5 || April | 64.8 || May | 71.7 || June | 71.3 || July | 72.8 |Use trend-adjusted exponential smoothing to forecast the firm’s August income. Assume that the initial forecast average for February is $65,000 and the initial trend adjustment is 0. The smoothing constants selected are $ \alpha = 0.1 $ and $ \beta = 0.2 $.**Problem 4.20**Resolve Problem 4.19 with $ \alpha = 0.1 $ and $ \beta = 0.8 $. Using Mean Squared Error (MSE), determine which smoothing constants provide a better forecast.

Formulae used: The trend-adjusted exponential forecasting is given by AFt = Ft + Tt Where, Ft =…

Answered: ...4.19 Income at the architectural…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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