Question: Given the following demand data, use exponential smoothing to fore - cast the demand in time period 1 3 : Time 1 2 3 4

Given the following demand data, use exponential smoothing to fore- cast the demand in time period 13:
Time 123456789101112 Demand 1058211110994991171161039689103
(a) Use the average over the 12 time periods as the initial estimate (S0) and try different \alpha values (from 0.1 to 0.9 with an increment of 0.1). Which \alpha value gives the best fit to the demand data?
(b) Use different values for the initial estimate (e.g., average over the first 3,6, and 9 time periods) and reevaluate the \alpha value that gives the best fit to the demand data. Is this \alpha value influenced by the initial estimate?

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