. The demand for all-terrain bicycles had been steadily increasing since 1989. In the following table are the sales per quarter of mountain bikes produced by Canyon and Cactus Cycles since the second quarter of 1989. (a) Plot the data and verify that the model for linear trend is acceptable. Draw a line through the plotted data and obtain a visual estimate of a and b. (b) Estimate the parameters of the model in preparation for double exponential smoothing. (c) Forecast sales for the third quarter of 1996 using these initial estimates. (d) Forecast sales for the fourth quarter of 1996 using alpha 0.3 and beta 0.25 if sales in the third quarter of 1996 were equal to 234. (e) Use linear regression to estimate the parameters and forecast the third quarter of 1996.
. The demand for all-terrain bicycles had been steadily increasing since 1989. In the following table are the sales per quarter of mountain bikes produced by Canyon and Cactus Cycles since the second quarter of 1989. (a) Plot the data and verify that the model for linear trend is acceptable. Draw a line through the plotted data and obtain a visual estimate of a and b. (b) Estimate the parameters of the model in preparation for double exponential smoothing. (c) Forecast sales for the third quarter of 1996 using these initial estimates. (d) Forecast sales for the fourth quarter of 1996 using alpha 0.3 and beta 0.25 if sales in the third quarter of 1996 were equal to 234. (e) Use linear regression to estimate the parameters and forecast the third quarter of 1996.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter13: Regression And Forecasting Models
Section13.7: Exponential Smoothing Models
Problem 26P: The file P13_26.xlsx contains the monthly number of airline tickets sold by the CareFree Travel...
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