Question: 2. Monthly demand at A&D electronics for flat-screen TVs are as shown. Estimate demand for month 13 using simple exponential smoothing with =0.3 and Holts
2. Monthly demand at A&D electronics for flat-screen TVs are as shown. Estimate demand for month 13 using simple exponential smoothing with =0.3 and Holts model with =0.05 and =0.1. For the simple exponential smoothing model, use forecast for F1=1,634 (the average demand over the 12 months). For Holts model, use F1=980 and T1=101 (both obtained through regression). Evaluate the MAD, MAPE and MSE for each forecast. Which of the two methods is more accurate? Why?
| Month | Demand (units) |
| 1 | 1,000 |
| 2 | 1,113 |
| 3 | 1,271 |
| 4 | 1,445 |
| 5 | 1,558 |
| 6 | 1,648 |
| 7 | 1,724 |
| 8 | 1,850 |
| 9 | 1,864 |
| 10 | 1,925 |
| 11 | 2,076 |
| 12 | 2,137 |
Could someone show me how to setup the formulas for both the simple exponential smoothing and holts methods in excel?
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