3. Use the data provided in problem 2.

a. Starting with a forecast of 550 for quarter 1, forecast the demand for quarter 13 using exponential smoothing with α = 0.6. Plot the actual data and the exponentially smoothed forecasts on the same graph.

b. Forecast demand from quarter 2 to quarter 13 using the naïve approach. Plot your forecasts on the graph developed in part a.

c. Looking at the graph in part

b, which forecasting method seems to be more appropriate?

d. Determine the MAD (disregard quarter 1 from computations) to confirm your answer in part c.