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Problem 10-12 (LO 10-3, 10-4) The famous Widget Company... The famous Widget Company uses simple exponential smoothing to forecast the demand for its best-selling

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Problem 10-12 (LO 10-3, 10-4) The famous Widget Company... The famous Widget Company uses simple exponential smoothing to forecast the demand for its best-selling widgets. The company is considering whether it should use a = 0.1 or a = 0.3 for forecasting purposes. Use the following data for daily sales to arrive at a recommendation. Day Demand Day Demand 1234567 35 8 39 47 9 24 46 10 26 39 11 36 26 12 43 33 13 46 24 14 29 (Round all answers to 1 decimal place.) a. For the first seven days of data compare the absolute deviation for forecasts using [a = 0.1 and a = 0.3. Start with A0 = 33. a = 0.1 Absolute Day Demand (t) Forecast (t) Error (t) MAD (t) TS 1 35 33.0 2.0 2 47 3 46 4 39 5 26 6 33 7 24 Total

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