Handy, Inc., produces a solar-powered electronic calculator that has experienced the following monthly sales history for the first four months of the year, in thousands of units: 23.3 March January February 30.3 72.3 April 15.5 a. If the forecast for January was 25, determine the one-step-ahead forecasts for February through May using exponential smoothing with a smoothing con- stant of a = .15.
Handy, Inc., produces a solar-powered electronic calculator that has experienced the following monthly sales history for the first four months of the year, in thousands of units: 23.3 March January February 30.3 72.3 April 15.5 a. If the forecast for January was 25, determine the one-step-ahead forecasts for February through May using exponential smoothing with a smoothing con- stant of a = .15.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Transcribed Image Text:22. Handy, Inc., produces a solar-powered electronic calculator that has experienced
the following monthly sales history for the first four months of the year, in
thousands of units:
23.3
March
January
February
30.3
72.3
April
15.5
a. If the forecast for January was 25, determine the one-step-ahead forecasts for
February through May using exponential smoothing with a smoothing con-
stant of a =
.15.
b. Repeat the calculation in part (a) for a value of a
forecasts do you observe?
c. Compute the MSES for the forecasts you obtained in parts (a) and (b) for
February through April. Which value of a gave more accurate forecasts, based
on the MSE?
.40. What difference in the
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