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.

Chapter13: Regression And Forecasting Models

Section13.7: Exponential Smoothing Models

Problem 28P: The file P13_28.xlsx contains monthly retail sales of U.S. liquor stores. a. Is seasonality present...

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Concept explainers

Forecasting in Business

Forecasting is the process of predicting the future based on the past and the present data and circumstances. In other words, forecasting is the act of making a detailed analysis of future events based on the decisions made in the past as well as the present. Forecasting plays a very important role in operational management as it helps in planning and decision-making. It is not only important for the success of a business but also contributes to individual growth and success. Many business organizations or companies have failed due to the shortcomings of their forecasting.

Question

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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