Question
Month Sales (in millions of packs) 1 1335 2 1334 3 1340 4 1342 5 1353 6 1358 7 1375 8 1376 9 1407 10
Month Sales (in millions of packs) 1 1335 2 1334 3 1340 4 1342 5 1353 6 1358 7 1375 8 1376 9 1407 10 1423 11 1470 12 1498
9. Zephyr would like to consider a more sophisticated forecasting method and the manager has suggested exponential smoothing. Using exponential smoothing, compute forecasts of sales for Select-A-Size Paper Towel packs, with = 0.4. Assume that the forecast for month 1 is given as 1335. What is the forecast for the 10th month? If your answer is not an integer, provide at least three decimal places, e.g., 7.500.
10. Compute the Mean Absolute Deviation (MAD) of the forecasts for months 2 to 12 from the exponential smoothing method in Question 9. If your answer is not an integer, provide at least three decimal places, e.g., 7.500. 11. Compute the Mean Square Error (MSE) of the forecasts for months 2 to 12 from the exponential smoothing method in Question 9. If your answer is not an integer, provide at least three decimal places, e.g., 7.500. 12. You have realized that the sales for Select-A-Size Paper Towel packs have been increasing over the past year. You have learned that the double exponential smoothing method can account for such a trend in the data. Use double exponential smoothing method to forecast sales for months 2 to 12, assuming S1=1335, T1=15 and set =0.8, =0.2. 13. Compute the Mean Absolute Deviation (MAD) of the forecasts for months 2 to 12 from the double exponential smoothing method in Question 12. If your answer is not an integer, provide at least three decimal places, e.g., 7.500. 14. Compute the Mean Square Error (MSE) of the forecasts for months 2 to 12 from the double exponential smoothing method in Question 12. If your answer is not an integer, provide at least three decimal places, e.g., 7.500.
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