Problem 5

Dont forget to answer the question about which forecast to use in the spreadsheet.

Reference the alpha values stored in cells C2 and C12 when you enter the exponential smoothing formula in column C. Entering cell references in formulas rather than numerical values makes it easier to change the alpha values; simply enter new values in cell C2 or C12 and the spreadsheet automatically calculates new forecasts and MAD values.

Use the MAD function (Mean Absolute Deviation) to calculate the absolute error values in column E.

Use the average function to calculate the MAD value.

Given the historical date, which do you think would be the better to use