Question: Reconsider Prob 27 7 4 Ben Swanson now has decided to use

Reconsider Prob. 27.7-4. Ben Swanson now has decided to use the exponential smoothing method to forecast future sales of washing machines, but he needs to decide on which smoothing constant to use. Using an initial estimate of 24, apply this method retrospectively to the 12 months of last year with α = 0.1, 0.2, 0.3, 0.4, and 0.5.
(a) Compare MAD for these five values of the smoothing constant α.
(b) Calculate and compare MSE for these five values of α.
In Problem 27.7-4

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  • CreatedSeptember 22, 2015
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