If the demand in the current week was 102 units and we had forecast it to...

    

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If the demand in the current week was 102 units and we had forecast it to be 125, what would be next week's forecast using an exponential smoothing model with an alpha of 0.3? Assume you are using exponential smoothing with an adjustment for trend. Demand is increasing at a very steady rate of about five units per week. Would you expect your alpha and delta parameters to be closer to one or zero? Your forecast is, on average, incorrect by about 10 percent. The average demand is 130 units. What is the M AD? You know that sales are greatly influenced by the amount your firm advertises in the local paper. What forecasting technique would you suggest trying? What forecasting tool is most appropriate when closely working with customers dependent on your products? If the demand in the current week was 102 units and we had forecast it to be 125, what would be next week's forecast using an exponential smoothing model with an alpha of 0.3? Assume you are using exponential smoothing with an adjustment for trend. Demand is increasing at a very steady rate of about five units per week. Would you expect your alpha and delta parameters to be closer to one or zero? Your forecast is, on average, incorrect by about 10 percent. The average demand is 130 units. What is the M AD? You know that sales are greatly influenced by the amount your firm advertises in the local paper. What forecasting technique would you suggest trying? What forecasting tool is most appropriate when closely working with customers dependent on your products?

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SOLUTION To calculate next weeks forecast using an exponential smoothing model with an alpha of 03 we can use the following formula Forecast for next ... View the full answer