(Solved): 2. (22 points) A popular brand of tennis shoe has had the following demand history by quarters over ...

2. (22 points) A popular brand of tennis shoe has had the following demand history by quarters over a two- year period. A linear regression line is fitted to the available data (8 quarters) as follows: y=4.18x + 27.57 2018 2019 Demand 16 32 71 2 3 4 2 3 4 Demand 14 45 84 47 62 (a) (13 points) Determine the initial values of the intercept, slope and seasonal factors (4 quarters) for Holt- Winter's method. (b) (6 points) Assume that the observed demand for the first quarter of 2020 was 18. Using a=0.2, p=0.15 and y=0.1, update the estimates of the level, trend and the seasonal factors. (c) (3 points) What are the forecasts made at the end of the first quarter of 2020 for the remaining three quarters of 2020? (Keep two decimal places for all results)