Question: Please answer using Excel. A company has been using exponential smoothing with an alpha of 0.1 to forecast weekly truck sales. It would like to
Please answer using Excel.
A company has been using exponential smoothing with an alpha of 0.1 to forecast weekly truck sales. It would like to evaluate if an alpha of 0.3 can provide greater accuracy. Period 1 3 Actual Demand 57 62 58 60 60 56 4 5 6 (1) Calculate the forecasted demand of Period 7 using alpha of 0.1 and 0.3. In your Excel file, create two separate sheets, one for a = 10% and one for a = 30%. (2) Comparing the error measures MAD and MSE, determine which alpha value (0.1 or 0.3) provides a more accurate forecasting process. Explain your analysis in one of the sheets you created in Part (1) of this question. (3) Identify an alpha that provides an acceptable tracking signal in Period 5Step by Step Solution
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