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 a=0.3 and Holt's

2. Monthly demand at A&D electronics for
2. Monthly demand at A&D electronics for flat-screen TVs are as shown. Estimate demand for month 13 using simple exponential smoothing with a=0.3 and Holt's model with a=0.05 and B=0.1. For the simple exponential smoothing model, use forecast for F, = 1,634 (the average demand over the 12 months). For Holt's model , use F, = 980 and T, = 101 (both obtained through regression). Evaluate the MAD, MAPE and MSE for each forecast. Which of the two methods is more accurate? Why? Month 1 2 3 4 5 Demand (units) 1,000 1,113 1,271 1,445 1,558 6 7 8 9 1,648 1,724 1,850 1,864 1,925 2,076 2,137 10 11 12

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