Develop a single exponential smoothing model using a 0.20. Use as a starting value the average

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Develop a single exponential smoothing model using a 0.20. Use as a starting value the average of the first 6 years’ data. Determine the forecasted value for year 2010.

a. Compute the MAD for this model.

b. Plot the forecast values against the actual data.

c. Use the same starting value but try different smoothing constants (say, 0.05, 0.10, 0.25, and 0.30) in an effort to reduce the MAD value.

d. Is it possible to answer part d of Problem 16.51 using this forecasting technique? Explain your answer.

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Business Statistics A Decision Making Approach

ISBN: 9780136121015

8th Edition

Authors: David F. Groebner, Patrick W. Shannon, Phillip C. Fry, Kent D. Smith

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Question Posted: Sep 21, 2024 11:00 AM

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Develop a single exponential smoothing model using a 0.20. Use as a starting value the average

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Business Statistics A Decision Making Approach

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