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Apply Holt-Winters Double exponential smoothing (without seasonality) to forecast the values of sales X for periods 13 and 14, using α = 0.2 and β = 0.3. Assume 12 months of sales data, as shown in the table below:
Month t
Sales Xt
1
152
2
176
3
160
4
192
5
220
6
272
7
256
8
280
9
300
10
11
312
12
328
Calculate the cross price elasticity of car travel (as measured by passenger kilometres) with respect to the price of petrol over this time period. Comment on thesign of your estimate.
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