Passenger miles flown on Northeast Airlines, a commuter firm serving the Boston hub, are as follows for the past 12 weeks:

(a) Assuming an initial forecast for week 1 of 17,000 miles, use exponential smoothing to compute miles for weeks 2 through 12. Use É‘ = 0.2
(b) What is the MAD for this model?
(c) Compute the RSFE and tracking signals. Are they within acceptablelimits?

Transcribed Image Text:

ACTUAL PASSENGER ACTUAL PASSENGER WEEK MILES (1,000S) WEEK MILES (1,000S) 20 17 21 19 23 18 16 18 10 20 15 12