Selecting smoothing constant is a key decision when applying exponentialsmoothing method. When you have previous data, one approach to makingthis decision is to apply the method retrospectively to these data withdifferent values of smoothing constant and then choose the value ofsmoothing constant that gives the smallest MAD. Use this approach forchoosing smoothing constant with each of the following data, whichrepresent monthly sales. In each case, use an initial estimate of 50 andcompare with the following smoothing constants of 0.1, 0.2, 0.3, 0.4, and0.5a. 51, 48, 52, 49, 53, 49, 48, 51, 50, 49
Selecting smoothing constant is a key decision when applying exponentialsmoothing method. When you have previous data, one approach to makingthis decision is to apply the method retrospectively to these data withdifferent values of smoothing constant and then choose the value ofsmoothing constant that gives the smallest MAD. Use this approach forchoosing smoothing constant with each of the following data, whichrepresent monthly sales. In each case, use an initial estimate of 50 andcompare with the following smoothing constants of 0.1, 0.2, 0.3, 0.4, and0.5a. 51, 48, 52, 49, 53, 49, 48, 51, 50, 49
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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Selecting smoothing constant is a key decision when applying exponential
smoothing method. When you have previous data, one approach to making
this decision is to apply the method retrospectively to these data with
different values of smoothing constant and then choose the value of
smoothing constant that gives the smallest MAD. Use this approach for
choosing smoothing constant with each of the following data, which
represent monthly sales. In each case, use an initial estimate of 50 and
compare with the following smoothing constants of 0.1, 0.2, 0.3, 0.4, and
0.5
a. 51, 48, 52, 49, 53, 49, 48, 51, 50, 49
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