Question: Monthly demand at A&D electronics for flat-screen TVs are as shown. Estimate demand for month 13 using simple exponential smoothing with =0.3 and Holts model
Monthly demand at A&D electronics for flat-screen TVs are as shown. Estimate demand for month 13 using simple exponential smoothing with =0.3 and Holts model with =0.05 and =0.1. For the simple exponential smoothing model, use forecast for F_1=1,634 (the average demand over the 12 months). For Holts model, use F_1=980 and T_1=101 (both obtained through regression). Evaluate the MAD, MAPE and MSE for each forecast. Which of the two methods is more accurate? Why? Month Demand (units) 1 1,000 2 1,113 3 1,271 4 1,445 5 1,558 6 1,648 7 1,724 8 1,850 9 1,864 10 1,925 11 2,076 12 2,137
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