Use Holt-Winter’s additive method to create a seasonal model that minimizes the MSE for the data set. Use Solver to determine the optimal values of alpha, beta, and gamma. We can initialize those variables to 0.a. What are the optimal values of alpha, beta, and gamma?b. What are the forecasts for each of the next 6 months using this technique?YearMonthTime PeriodCOGS11121637 2225506 3326594 4421933 5523117 6626979 7728337 8828926 9925015 101028196 111124170 121225004211324575 21435848 31535217 41632759 51736542 61836109 71940279 82037816 92136338 102237814 112339359 122434151312539862 22650664 32748533 42845382 52943981 63041276 73144284 83246920 93347469 103443187

Holt-Winter’s additive method is a forecasting technique that considers both trend and seasonality.…

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Practical Management Science

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ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

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Use Holt-Winter’s additive method to create a seasonal model that minimizes the MSE for the data set. Use Solver to determine the optimal values of alpha, beta, and gamma. We can initialize those variables to 0.
a. What are the optimal values of alpha, beta, and gamma?
b. What are the forecasts for each of the next 6 months using this technique?

Year	Month	Time Period	COGS
1	1	1	21637
	2	2	25506
	3	3	26594
	4	4	21933
	5	5	23117
	6	6	26979
	7	7	28337
	8	8	28926
	9	9	25015
	10	10	28196
	11	11	24170
	12	12	25004
2	1	13	24575
	2	14	35848
	3	15	35217
	4	16	32759
	5	17	36542
	6	18	36109
	7	19	40279
	8	20	37816
	9	21	36338
	10	22	37814
	11	23	39359
	12	24	34151
3	1	25	39862
	2	26	50664
	3	27	48533
	4	28	45382
	5	29	43981
	6	30	41276
	7	31	44284
	8	32	46920
	9	33	47469
	10	34	43187

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