Question: Analyst Joe Turner is trying to decide between using alpha =0.42 or alpha=.15 to prepare Exponential Smoothing forecasts for the Car business he works at.
Analyst Joe Turner is trying to decide between using alpha =0.42 or alpha=.15 to prepare Exponential Smoothing forecasts for the Car business he works at. Assume the Demand is as shown in the table below. Using MAD as the measure of forecast accuracy, make a recommendation with justification on which alpha to use.
Assume the forecast for July was 105. You should show all tables that you use in arriving at your recommendation. It is required that you use Excel for this question.
| Month | Demand |
|
| July | 122 |
|
| August | 134 |
|
| September | 150 |
|
| October | 98 |
|
| November | 128 |
|
| December | 140 |
|
| January | 130 |
|
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