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Killian Corporation makes hot chocolate mix. Sales, in thousands of pounds, follow a seasonal pattern. Quarterly forecasts are made using exponential smoothing for a seasonal model without trend. Currently S4 = 186.5, c1 = 1.4, c2 = 0.6, c3 = 0.3, and c4 = 1.7.
(A) Give forecasts for the next four quarters.
(B) Demand for the first quarter of the New Year is 285. Update the parameters and give forecasts for the next four quarters if alpha is 0.25 and gamma is 0.15.
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