In: Math
Income at the architectural firm Spraggins and Yunes for the period February to July was as follows:
Month |
February |
March |
April |
May |
June |
July |
Income ($000's) |
90.090.0 |
91.591.5 |
96.096.0 |
85.485.4 |
92.292.2 |
96.096.0 |
Assume that the initial forecast for February is
85.085.0
(in $ thousands) and the initial trend adjustment is 0. The smoothing constants selected are
alphaα
=
0.10.1
and
betaβ
=
0.20.2.
Using trend-adjusted exponential smoothing, the forecast for the architectural firm's August income is
nothing
thousand dollars (round your response to two decimal places).
The mean squared error (MSE) for the forecast developed using trend-adjusted exponential smoothing is
nothing
(thousand
dollars right parenthesis squareddollars)2
(round your response to two decimal places).