The table below depicts the demand history for hoodie sweats

The table below depicts the demand history for hoodie sweatshirts from a college bookstore: Find the initial values below: Initial base value S_0 (use the average of the demand for the 2013) Initial trend value G_0 (use (average of 2013 - average of 2012)/4) Using these initial values, forecast the demand for all four quarters of 2014. Using the forecasted data, and known demand data, complete the table below and calculate The MAD, MSE and MAPE for 2004 Given that the demand in the first quarter of 2014 is 180. and given values of alpha = 0.2 and beta = 0.2, use Holt\'s Method to update the base value S_1, and trend value G_1 Using these new values, forecast the demand for quarters 2, 3, and 4 of 2014.

Solution

a. Enter the dat ain Minitab. Go to Stat> Time series> Double exponential Smoothing and enter C1 in \'Variable\' text box. Click OK.

The base value and trend values are 1.77 and 0.02.

c.

MAD, MSEand MAPE are 143.1, 30928.3 and 61.2.