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Monthly demand at A&D Electronics for flat-screen TVs are as shown. Estimate demand for the next two months using simple exponential smoothing with =0.3 and
Monthly demand at A&D Electronics for flat-screen TVs are as shown. Estimate demand for the next two months using simple exponential smoothing with =0.3 and Holt's model with =0.05 and =0.1. For the simple exponential smoothing model, use the level at Period 0 to be L0=1,659(the average demand over the 12 months). For Holt's model, use level at Period 0 to be T0=109 (both are obtained through regression). Evaluate the MAD, MAPE, MSE, bias, and TS in each case. Which of the two methods do you prefer? Why?
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