Suppose the firm uses Holt’s method for forecasting sales. Assume L0 = 0 and T0 = 0. Using
α = 0.2 and β = 0.2, find one-step-ahead forecasts for 1992 through 1999 and compute
the MAD and MSE for the forecasts during this period. What is the sales forecast for the
year 2010 made at the end of 1998? Based on the result of 1998, why might this forecast
be very inaccurate?