Question: Monthly demand at A&D Electronics for flat screen TVs are as follows: Month Demand (units) 1,000 1,113 1,271 1,445 1,558 1,648 1 2 3

Monthly demand at A&D Electronics for flat screen TVs are as follows:

Monthly demand at A&D Electronics for flat screen TVs are as follows: Month Demand (units) 1,000 1,113 1,271 1,445 1,558 1,648 1 2 3 4 5 6 7 8 9 10 11 12 1,724 1,850 1,864 2,076 2,167 2,191 Estimate demand for the next two months using simple exponential smoothing with a=0.3 and Holt's model with a=0.05 and 3-0.1. For the simple exponential smoothing model, use the level at Period 0 to be LO = 1,659 (the average demand over the 12 months). For Holt's model, use level at Period 0 to be L0 = 948 and the trend in Period 0 to be TO= 109. Evaluate the MAD, MAPE, MSE, bias, and TS in each case. Which of the two methods do you prefer? Why?

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