Question: a. Make an exponential smoothing forecast for periods 2 through 5 with 2 values of alpha, 0.05 and 0.60, and an assumed forecast for period

a. Make an exponential smoothing forecast for periods 2 through 5 with 2 values of alpha, 0.05 and 0.60, and an assumed forecast for period 1 of 30.

b. Compute the MAD for each of the above forecasts.

c. Which value of alpha will you choose?

Period

1

2

3

4

Data

32

14

41

30

Step by Step Solution

★★★★★

3.44 Rating (176 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

a b MAD 931 and 1342 c 005 because it provides the lowes... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

498-B-F-E (830).docx

120 KBs Word File

Students Have Also Explored These Related Finance Questions!

Q:

Develop a single exponential smoothing forecast for Periods 2 through 9, using the data below. Each time you develop a forecast, round your answer off to a whole number (ex. -2012.6 = 2013.) Use a...

Q:

Calculate an exponential smoothing forecast for periods 2-8 using = 0.3 and an initial forecast for period 1 of 22.

Q:

Given the following data: Period 1 2 3 4 5 6 7 8 9 Gross Requirements 70 30 90 30 80 20 90 60 80 The beginning inventory is 0 and there are no scheduled receipts. The order cost is $90 and the...

Q:

- Make an exponential smoothing forecast for periods 2 through 5 with 2 values of alpha, 0.05 and 0.60, and an assumed forecast for period 1 of 30 . - Compute the MAD for each of the above forecasts....

Q:

Break-Even Analysis and Profit Planning Reebok Corporation manufactures running shoes.The selling price is $85 per pair (unit) and variable costs are $60.35 per pair (unit).The sales volume of...

Q:

The following table shows actual demand values for 5 periods. In addition, an assumed forecast value for period 1 is given. Complete the table in order to create a simple exponential smoothing...

Q:

The following table shows actual demand values for 5 periods. In addition, an assumed forecast value for period 1 is given. Complete the table in order to create a simple exponential smoothing...

Q:

The following table shows actual demand values for 5 periods. In addition, an assumed forecast value for period 1 is given. Complete the table in order to create a simple exponential smoothing...

Q:

The following table shows actual demand values for 5 periods. In addition, an assumed forecast value for period 1 is give Complete the table in order to create a simple exponential smoothing forecast...

Q:

Based upon the following historical data, answer the following questions: a. Calculate the exponential smoothing forecast for periods 2 to 12 using an initial forecast (Fl) of 100 and an alpha (a) of...

Q:

A nonlinear spring has the force versus displacement relation of F = kns(x x0)n. If the spring end is moved to x1 from the relaxed state, determine the formula for the required work.

Q:

1. There seem to be many advantages to behaviour-based interviewing. Are there disadvantages as well? Explain. 2. Why is behaviour-based interviewing becoming so common? 3. Consider the following...

Q:

The U . S . Rule can be applied to open credit payments. true or false

Q:

Fergie Ltd records the following expenses and income for the year ended 30 June 2019. $000 Income Interest revenue 200 Sales revenue 1 600 Expenses Cost of goods sold 550 Administration salaries 170...

Q:

Describe the role venture capitalists played in the founding and expansion of Tabula. Comment on possible reasons for the involvement of multiple VC firms.

Q:

Suppose you become an intern at a local VC firm and are asked to assist in due diligence on a proposed investment in a telecommunications company. Explain how you would approach such a task and where...

Q:

Interact Systems, Inc., has developed software tools that help hotel chains solve application integration problems. Interacts application integration server (AIS) provides a two-way interface between...

Q:

A firm has two mutually exclusive investment projects to evaluate. The projects have the following cash flows: Time After-tax Cash Flow X After-tax Cash Flow Y 0 -$85,000 -$80,000 1 35,000 35,000 2...

Q:

Please help, I can't remember how to find these. Thank you. The variable x represents the number of minutes for a factory worker to complete a task on the assembly line. x 3.6 4.3 3 25.1 21 9.5 8.4...

Q:

Required information [The following information applies to the questions displayed below.] Tamar Co. manufactures a single product in one department. All direct materials are added at the beginning...