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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 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Demand 127 194 159 91 83 132 126 133 95 149 96 85 128 134 Predicted 120 200 150 103 80 144 128 124 97 150 94 76 140 128 a. Compute MAD for the fifth period, then update it period by period using exponential smoothing with a = 1. (Round your intermediate calculations and final answers to 3 decimal places.) MADE Demand 127 194 159 91 83 t Period 1 2 3 4 5 6 7 8 9 10 11 12 13 14 132 126 133 95 149 96 85 128 134 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.) Tracking Signal Period 1 2 3 4 5 6 7 8 9 10 11 12 13 14 A Demand 127 194 159 91 83 132 126 133 95 149 96 85 128 134
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