Question

Problem 3-17

A pharmacist has been monitoring sales of a certain over-the-counter pain reliever. Daily sales during the last 15 days were

Day:	1	2	3	4	5	6	7	8	9
Number sold:	32	35	38	37	44	43	41	44	42
Day:	10	11	12	13	14	15
Number sold:	48	43	53	44	50	49

a. Assume the data refer to demand rather than sales. Using trend-adjusted exponential smoothing with an initial forecast of 48 for Day 8, an initial trend estimate of 2, and α = β = .2, develop demand forecasts for Days 9 through 16. Then compute the resultant MSE using the error values from Days 8 through 15. (Round your intermediate period-by-period forecast and error values to 3 decimal places. Round your final MSE answer to 3 decimal places.)

MSE ____?

Answer 1