Exponential smoothing is used to forecast automobile battery sales. Two value of are examined, =

Question:

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:
Month___________ Actual Battery Sales ___________ Forecast
January ........................ 20 ................................. 22
February ...................... 21
March .......................... 15
April .......................... 14
May .......................... 13
June .......................... 16