Exponential smoothing is used to forecast automobile battery sales. Two value of are examined, = 0.8 and = 0.5. Evaluate the accuracy
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Exponential smoothing is used to forecast automobile battery sales. Two value of α are examined, α = 0.8 and α = 0.5. Evaluate the accuracy of each smoothing constant. Which is preferable? (Assume the forecast for January was 22 batteries.) Actual sales are given below:
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Month___________ Actual Battery Sales ___________ Forecast
January ........................ 20 ................................. 22
February ...................... 21
March .......................... 15
April .......................... 14
May .......................... 13
June .......................... 16
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On the basis of this analysis a smoothing constant of a 08 is preferred to that of ... View full answer

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