Question

The following table contains the demand from the last 10 months:

MONTH	ACTUAL DEMAND
1	28
2	30
3	29
4	40
5	43
6	42
7	43
8	45
9	44
10	47

a. Calculate the single exponential smoothing forecast for these data using an α of 0.20 and an initial forecast (F₁) of 28. (Round your intermediate calculations and answers to 2 decimal places.)

Month	Exponential Smoothing
1
2
3
4
5
6
7
8
9
10

b. Calculate the exponential smoothing with trend forecast for these data using an α of 0.20, a δ of 0.30, an initial trend forecast (T₁) of 1.00, and an initial exponentially smoothed forecast (F₁) of 27. (Round your intermediate calculations and answers to 2 decimal places.)

Month	FITt
1
2
3
4
5
6
7
8
9
10

c-1. Calculate the mean absolute deviation (MAD) for the last nine months of forecasts. (Round your intermediate calculations and answers to 2 decimal places.)

	MAD
Single exponential smoothing forecast
Exponential smoothing with trend forecast

c-2. Which is best?

	Single exponential smoothing forecast
	Exponential smoothing with trend forecast

Answer 1