Bob works at Baseball Inc., a seller of high-quality baseballs. He is

interested in forecasting demand for his baseballs that are sold weekly to

a league using exponential smoothing. Assume an initial forecast of 175

and the demand data below:

WeekDemand Forecast

1 180 175

2 168

3 159

4 175

(a) Using Exponential Smoothing and = 0.3, forecast how many baseballs need to be produced for week 4?

(b) Using Mean Absolute Deviation (MAD) as your sole evaluation measurement, which model would you pick and why?