Monthly data for a plastic container for a period of 10 months is given below: 

a) Use an exponential smoothing with no trend in a conventional manner. Choose a = 0.25. Determine bias, MAD, and MSD and comment on the results. 

b) Does it improve the forecast if you use an exponential smoothing with a linear trend and smoothing constants a=0.3 and B = 0.2?.

c) Suggest a modification of exponential smoothing (if necessary) that make more sense for this situation.

Transcribed Image Text:

Month Demand 335 2 420 3 485 450 in 470 6 630 7 650 700 680 10 640 Month Demand 335 2 420 3 485 450 in 470 6 630 7 650 700 680 10 640

Answer rating: 100% (QA)

a The bias is the difference between the actual demand and the forecasted dem... View the full answer