The manager of the Petroco 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:

a. Compute an exponential smoothed forecast, using an α value of 0.4

b. Compute the MAD.

Petroco Service Station
alpha =	0.4
Month	Gas Demand	Exp Forecast	Error
October	775	----
November	835
December	605
January	450
February	600
March	700
April	820
May	925
June	1500
July	1200
August
	8410			SUM
MAPD

Month Gasoline Demanded (gal.) October 775 November 835 December 605 January 450 February 600 March 700 April 820 May 925 June 1500 July 1200