Exponential smoothing Forecasts

Week	Demand	alpha = 0.2	alpha = 0.6
1	413
2	299
3	335
4	447
5	468
6	388
	MAD

The manager of the health clinic would also like to use exponential smoothing to forecast demand for emergency services in the facility. However, she is not sure whether to use a high or low value of a. To make her decision, she would like to compare the forecast accuracy of a high and low a on historical data. She has decided to use an a = 0.6 for the high value and a = 0.2 for the low value.

For both alpha values, enter exponential smoothing forecasts for weeks 2-6, and calculate the MAD for each alpha value. (Round answers to 2 decimal place, e.g. 15.25.)

Initatilize the computations using the nave method

Week Demand (in patients serviced)

1 413

2 299

3 335

4 447

5 468

6 388