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The manager of a small health clinic would like to use exponential smoothing to forecast demand for laboratory services in the facility. However, she
The manager of a small health clinic would like to use exponential smoothing to forecast demand for laboratory services in the facility. However, she is not sure whether to use a high or low value of. To make her decision, she would like to compare the forecast accuracy of a high and low on historical data. She has decided to use an a=0.7 for the high value and a=0.1 for the low value. Given the following historical data, which do you think would be better to use? (Round answers to 2 decimal place, e.g. 15.25) Week Demand (lab requirements) 1 348 2 358 3 317 4 385 5 374 338 Forecasts using a 0.1, MAD Forecasts using a 0.7, MAD Using provides a better historical fit based on the MAD criterion.
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