a) What advantages do exponential smoothing have over moving average? How does the number of periads...

 

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a) What advantages do exponential smoothing have over moving average? How does the number of periads in a moving average affect the responsiveness of the forecast? How does the size of the smoothing constant in exponential smoothing affect the responsiveness of the forecast? (5 points) There's a new band in town, Cool Spring, and they want to determine a forecasting method to help them estimate revenue. To date they have generated the folowing revenue: Month Reverue september october November December Januny $990 1,010 980 1,020 970 b) Cakulate forecasts for September - January using linear-trend and double exponential smoothing methods. Use an as 0.25 and = 0.5 (start with initial estimates Se = $300, Tsepi = $20). (15 points) c) Cakulate MAPE for September - January for each method and indicate which method provides the better forecasts; state any necessary assumptions. Explain. (8 points) d) Forecast revenue for February and March based on your preferred method. State any necessary assumptions. (2 points) a) What advantages do exponential smoothing have over moving average? How does the number of periads in a moving average affect the responsiveness of the forecast? How does the size of the smoothing constant in exponential smoothing affect the responsiveness of the forecast? (5 points) There's a new band in town, Cool Spring, and they want to determine a forecasting method to help them estimate revenue. To date they have generated the folowing revenue: Month Reverue september october November December Januny $990 1,010 980 1,020 970 b) Cakulate forecasts for September - January using linear-trend and double exponential smoothing methods. Use an as 0.25 and = 0.5 (start with initial estimates Se = $300, Tsepi = $20). (15 points) c) Cakulate MAPE for September - January for each method and indicate which method provides the better forecasts; state any necessary assumptions. Explain. (8 points) d) Forecast revenue for February and March based on your preferred method. State any necessary assumptions. (2 points)

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a Exponential smoothing advantage is that it responds to price changes more quickly tha... View the full answer