Question: Your manager is trying to determine what forecasting method to use. Based on the following historical data, calculate the following forecast and specify what procedure
Your manager is trying to determine what forecasting method to use. Based on the following historical data, calculate the following forecast and specify what procedure you would utilize.
| month | actual demand |
| 1 | 62 |
| 2 | 65 |
| 3 | 67 |
| 4 | 68 |
| 5 | 71 |
| 6 | 73 |
| 7 | 76 |
| 8 | 78 |
| 9 | 78 |
| 10 | 80 |
| 11 | 84 |
| 12 | 85 |
1. Calculate the exponential smoothing with trend component forecast for periods 212 using an initial trend forecast (T1) of 1.8, an initial exponential smoothing forecast (F1) of 60, an of 0.30, and a of 0.30. (Round your answers to 3 decimal places.)
2. Calculate the mean absolute deviation (MAD) for the forecast. (Round your answers to 3 decimal places.)
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