Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The manager of the Excom Service Station wants to forecast the demand for unleaded gasoline next month so that the proper number of gallons
The manager of the Excom Service Station wants to forecast the demand for unleaded gasoline next month so that the proper number of gallons can be ordered from the distributor. The owner has accumulated the following data on demand for unleaded gasoline from sales during the past 10 months: Month October Gasoline Demanded (gal) 800 November 725 December 630 January 500 February 645 March 690 April 730 May 810 June July 1200 980 a. Compute an exponentially smoothed forecast using an a value of 0.30. b. Compute an adjusted exponentially smoothed forecast (a = 0.30 and = 0.20). c. Compare the two forecasts using MAPD and indicate which seems to be the most accurate.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
To compute the forecasts using exponential smoothing and adjusted exponential smoothing well follow these steps For simplicity lets assume the initial forecast is equal to the first months actual dema...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started