Refer to Problem 4.2. Develop a forecast for years 2 through 12 using exponential smoothing with α = .4 and a forecast for year 1 of 6. Plot your new forecast on a graph with the actual data and the naïve forecast. Based on a visual inspection, which forecast isbetter?

Transcribed Image Text:

Year 1 2 3 4 5 6 7 89 10 11 Demand 7 9 5 9 13 8 12 13 9 11 7