Question: Demand for a product has been recorded for four consecutive years and is presented in the table below Perform a simple exponential smoothing (use regular

Demand for a product has been recorded for four

Demand for a product has been recorded for four consecutive years and is presented in the table below Perform a simple exponential smoothing (use regular way), two times. First, a = 0.7, and second, a = 0.4. Assume that real demand of 2017 will be 1400. Which a gives us better forecast? Why? Using MSE variation method, which a is more effective than other? Why? Year Demand 2013 1300 2014 1340 2015 1370 2016 1350

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