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The table below shows the most recent 4 months of demand for an electronics appliance at Best Denki.
Month Actual Demand
1 30
2 32
3 38
4 40
As the person-in-charge of demand forecasting at Best Denki, apply the:
(i) Single exponential smoothing model with α = 0.4 to calculate the forecast for the 5th month, assuming that the forecast for Month 1 was 34. (Use two decimal points and do not round your forecasted values.)
(ii) Simple linear regression to construct the regression equation and calculate the forecast for the 5th month.
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