6. Consider the following data table. (12 Points)a) Forecast demand using exponential smoothing with an apha of 0.25, and an initial forecast of128.0 for period 1.b) Calculate the MAD and MSE.PeriodReal demand130138129140345133

Error = Real demand - Forecast Absolute Error = Positive value of Error Error Square = square of…

6. Consider the following data table. (12 Points) a) Forecast demand using exponential smoothing with an alpha of 0.25, and an initial forecast of 128.0 for period 1. b) Calculate the MAD and MSE. Period Real demand 2 138 3 129 4 140 5 133A

6. Consider the following data table. (12 Points) a) Forecast demand using exponential smoothing with an alpha of 0.25, and an initial forecast of 128.0 for period 1. b) Calculate the MAD and MSE. Period Real demand 2 138 3 129 4 140 5 133A

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter13: Regression And Forecasting Models

Section13.7: Exponential Smoothing Models

Problem 28P: The file P13_28.xlsx contains monthly retail sales of U.S. liquor stores. a. Is seasonality present...

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The file P13_42.xlsx contains monthly data on consumer revolving credit (in millions of dollars) through credit unions. a. Use these data to forecast consumer revolving credit through credit unions for the next 12 months. Do it in two ways. First, fit an exponential trend to the series. Second, use Holts method with optimized smoothing constants. b. Which of these two methods appears to provide the best forecasts? Answer by comparing their MAPE values.
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