Question
Monthly demand at A&D Electronics for flat-screen TVs are as follows Estimate demand for the next two weeks using simple exponential smoothing with a =
Monthly demand at A&D Electronics for flat-screen TVs are as follows
Estimate demand for the next two weeks using simple exponential smoothing with a = 0.3 and Holt's model with a = 0.0 5 and b = 0.1. For the simple exponential smoothing model, use the level at Period 0 to be L 0 = 1,659 (the average demand over the 12 months). For Holt's model, use level at Period 0 to be L 0 = 948 and the trend in Period 0 to be T 0 = 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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