Question
The manager of a travel agency has been using a seasonally adjusted forecast to predict demand for packaged tours. The actual and predicted values are
The manager of a travel agency has been using a seasonally adjusted forecast to predict demand for packaged tours. The actual and predicted values are as follows:
Period | Demand | Predicted | |||||||
1 | 135 | 113 | |||||||
2 | 195 | 200 | |||||||
3 | 155 | 150 | |||||||
4 | 90 | 102 | |||||||
5 | 85 | 80 | |||||||
6 | 130 | 135 | |||||||
7 | 125 | 128 | |||||||
8 | 130 | 124 | |||||||
9 | 95 | 109 | |||||||
10 | 150 | 150 | |||||||
11 | 105 | 94 | |||||||
12 | 90 | 80 | |||||||
13 | 125 | 140 | |||||||
14 | 135 | 128 | |||||||
a. Compute MAD for the fifth period, then update it period by period using exponential smoothing with = .05. (Round your intermediate calculations and final answers to 3 decimal places.)
b. Compute a tracking signal for periods 5 through 14 using the initial and updated MADs. (Negative values should be indicated by a minus sign. Round your intermediate calculations and final answers to 3 decimal places.)
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