1. Given the following data, use exponential smoothing with =0.1 and =0.6 to generate forecasts for periods 2 through 6. Use Mad and MEE to decide which of the two models produce a netter forecast. (Assume the forecast for Period 1 is 17)

Period	Actual	Forecast
1	14	17
2	16
3	16
4	11
5	12
6	17

What is the forecast for Period 6 when you use =0.6? (Express it to 2 decimal places)

2. What is the value of Mean Absolute Deviation (MAD) when =0.6? Calculate to 3 decimal places. (Use all forecasted values from Period 1 to Period 6.)

3. Which method produces a better forecast? (Use all forecasted values from Period 1 to Period 6.)

A. When we use MSE, =0.1 produces a better forecast.

B. When we use MAD, =0.1 produces a better forecast.

C. =0.1 produces a better forecast measured both by MAD and MSE.

D. =0.6 produces a better forecast measured both by MAD and MSE.

4. Solve:

y=53x2y=53x2

y=52x+1y=52x+1

After you get a solution (x,y), calculate the value of x+y. If your answer is in fraction, change it to the decimal.