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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