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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 a = .1 and b = .2.   I found this table with the answer but I couldn't solve the August on my own. Can anyone show me how to get the month of august only?

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 a = .1 and b = .2.   I found this table with the answer but I couldn't solve the August on my own. Can anyone show me how to get the month of august only?

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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 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 a = .1 and b = .2.

 

I found this table with the answer but I couldn't solve the August on my own. Can anyone show me how to get the month of august only?

Income( in $ thousands) Forecast Including trend (FIT) Forecast at Months Trend at time t (Tt) time t (Ft) A(t) Feb 70 65.00 0.00 65.00 Mar 68.5 65.50 0.10 65.60 Apr 64.5 65.95 0.17 66.12 May 71.7 65.96 0.14 66.10 Jun 71.3 66.66 0.25 66.91 Jul 72.8 67.35 0.34 67.68 Aug 68.19 0.44 68.63 August Income is $68630
Transcribed Image Text:Income( in $ thousands) Forecast Including trend (FIT) Forecast at Months Trend at time t (Tt) time t (Ft) A(t) Feb 70 65.00 0.00 65.00 Mar 68.5 65.50 0.10 65.60 Apr 64.5 65.95 0.17 66.12 May 71.7 65.96 0.14 66.10 Jun 71.3 66.66 0.25 66.91 Jul 72.8 67.35 0.34 67.68 Aug 68.19 0.44 68.63 August Income is $68630
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