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The accounting department needs to forecast the profit for a subsidiary. The data for several months...

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General Management

The accounting department needs to forecast the profitfor a subsidiary. The data for several months is supplied below. Becareful since the data is listed beginning with the most recent.The forecasting method to be used here is exponential smoothingwith trend accounting for seasonality given a smoothing constant(alpha) of 0.69, a trend smoothing constant (delta) of 0.3, aprevious trend amount, seasonally adjusted, of 65, and a previousseasonal forecast of 582. Please round your forecast to the nearestwhole number.

Jul 2020: 544Jun 2020: 274May 2020: -1684Apr 2020: 1439Mar 2020: 970Feb 2020: -1689
Jan 2020: 340Dec 2019: 253Nov 2019: 1631Oct 2019: 257Sep 2019: -660Aug 2019: 582
Jul 2019: 2258Jun 2019: 945May 2019: 2580Apr 2019: 704Mar 2019: -1884Feb 2019: 1902
Jan 2019: 1477Dec 2018: 2141Nov 2018: -778Oct 2018: 1609Sep 2018: -1625Aug 2018: 1187
Jul 2018: 2959Jun 2018: -653May 2018: -16Apr 2018: 2132Mar 2018: -979

Answer & Explanation Solved by verified expert
4.2 Ratings (699 Votes)
AnswerFormulasusedFt1 Dt 1FtTt1 Ft1Ft 1TtAFt1 Ft1 Tt1WhereFt1 Unadjusted Forecast for currentperiodDt Sales for previous periodFt Forecast for previous periodTt1 Trend factor for current periodTt Trend factor for previous periodAFt1    See Answer
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