Question: #28 (I need help with part B only) Part A Consider the following actual demand and forecast data for ARX AG a national distributor of
#28 (I need help with part B only) Part A Consider the following actual demand and forecast data for ARX AG a national distributor of commercial blends and custom formulated fertilizers for traditional and organic crop nutrition needs. All data is in tons.
| Month | Forecast | Actual Demand |
| 1 | 1900 | 1890 |
| 2 | 1892 | 1840 |
| 3 | 1850 | 1838 |
| 4 | 1840 | 1831 |
| 5 | 1833 | 1830 |
| 6 | 1831 | 1800 |
| 7 | 1806 | 1780 |
| 8 | 1785 | 1740 |
| 9 | 1749 | 1732 |
| 10 | ||
| 11 | ||
| 12 |
Develop a forecast for month 10 using exponential smoothing with a smoothing constant of .8. Note that the initial forecast of 1900 was not derived using exponential smoothing. Select the answer that best matches yours.
A) 1750 B) 1773 C) 1800 D) 1735 (answer) E) 1780 Part B Continuing with ARX AG what is the Mean Absolute Deviation of the Forecast?
A) 24.38 B) 23.89 C) 22.75 D) 25.08 E) 24.92
__PRESENT
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
