Period (t) Actual Demand Dt

1 28

2 34

3 3

Apply the simple exponential smoothing model for periods 1, 2 and 3. Assume that F1= 30. At the end of period 1, calculate F2, forecast for period 2 as of end of period 1. Then at the end of period 2, calculate E2 and F3. Similarly, at the end of period 3, calculate E3 and F4. Based upon E2 and E3, compute Bias and MAD. Let alpha = 3