Answer question B only, A is for reference only.

Toyota Motors would like to move beyond the moving average method and explore a more sophisticated alternative. They want you to consider exponential smoothing.

a. Using the data table presented in Question 1 and simple exponential smoothing, compute two sets of forecasts for the sales of Hybrid G for months 2 to 7, corresponding to values of 0.5 and 0.7. Assume that the forecast for Month 1 is 1443.

When =0.5, the forecast sales for month 2 (F₂) is .

When =0.5, the forecast sales for month 3 (F₃) is .

When =0.5, the forecast sales for month 4 (F₄) is .

When =0.5, the forecast sales for month 5 (F₅) is .

When =0.5, the forecast sales for month 6 (F₆) is .

When =0.5, the forecast sales for month 7 (F₇) is .

When =0.7, the forecast sales for month 2 (F₂) is .

When =0.7, the forecast sales for month 3 (F₃) is .

When =0.7, the forecast sales for month 4 (F₄) is .

When =0.7, the forecast sales for month 5 (F₅) is .

When =0.7, the forecast sales for month 6 (F₆) is .

When =0.7, the forecast sales for month 7 (F₇) is .

b. Compute the forecast errors for months 2 to 6 and then calculate the MAD and Mean Absolute Percentage Error (MAPE) for those months for each of the two sets of forecasts. Which value seems to be more appropriate for this method?

When =0.5, the MAD of forecast errors for months 2 to 6 is .

When =0.5, the MAPE of forecast errors for months 2 to 6 is %.

When =0.7, the MAD is and the MAPE is %.