Forecasting With Exponential Smoothing; Pricing Calculations; Markup And Margin Calculations - HP 12c Platinum Reference Manual

n
∑
=
S ln
1
=
i 1
2 n
∑
=
S
2
= +
i n
3 n
∑
=
S
3
=
i 2 n
a, b and c are determined by solving the three equations above simultaneously.

Forecasting With Exponential Smoothing

α = smoothing constant (0 < α < 1)
X = actual current period usage
t
Smoothed
C =
Change,
Trend, T
t
Current period expected usage,
Forecast of next period expected usage,
Error, e
t
Cumulative error
Initial conditions

Pricing Calculations

Markup and Margin Calculations

Ma = margin(%).
Mu = markup(%).
S = selling price.
C = cost.
= 100
Ma
= 100
Mu
( )
= +
y n ln c b ln a
i
( )
+
n 1
= +
ln y n ln c b
i
1
+
2 n 1
= +
ln y n ln c b
i
+
1
=
average, S α X
t
S - S
t t t - 1
= + ( − )
α Χ 1 α Τ
t
= ˆ
−
D X
t t
m
2
∑
=
e
t
=
t 1
=
: S X
− −
t 1 t
−
S C
S
−
S C
C
n
−
b 1
−
b 1
n
−
b 1
ln a
−
b 1
n
−
b 1
( )
ln a
−
b 1
+ ( − )
1 α S
−
t t 1
−
t 1
( )
1− α
= +
D S
t t
α
ˆ
=
D S
+
t 1
=
and T 0
−
1 t 1
Appendix B 161
T
t
 
1
+
 
T
t t
 α 