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6. [10marks] The manager of a hotel has been using a seasonally adjusted forecast to predict demand for rooms. The actual and predicted values

6. [10marks] The manager of a hotel has been using a seasonally adjusted forecast to predict demand for

6. [10marks] The manager of a hotel has been using a seasonally adjusted forecast to predict demand for rooms. The actual and predicted values are as follows: Period 2 3 4 5 7 8 1 9 10 11 Demand 93 104 105 139 100 Predicted 95 102 106 97 80 130 117 124 100 150 94 88 94 85 110 116 6 122 12 13 14 97 137 124 90 130 118 a. b. Compute a tracking signal for periods 5 through 14 using the initial and updated SMADs. If limits of 5 are used, what can you conclude? Compute MAD for the fifth period, then update it period by period until period 14 using exponential smoothing with a = 0.2.

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