Use the sales data in the table ( attached Image) and apply the same forecast method when α = 0.1, 0.2, 0.3, 0.4, 0.5, 0.6, 0.7, 0.8, 0.9, and 1. What is the best value for α? What does the best value of α indicate or show in regards to the forecast model? (Hint: Use Microsoft Excel to solve the question)
Use the sales data in the table ( attached Image) and apply the same forecast method when α = 0.1, 0.2, 0.3, 0.4, 0.5, 0.6, 0.7, 0.8, 0.9, and 1. What is the best value for α? What does the best value of α indicate or show in regards to the forecast model? (Hint: Use Microsoft Excel to solve the question)
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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Use the sales data in the table ( attached Image) and apply the same
Transcribed Image Text:MM-YY Period Sales
t
St
9-Jul
9-Aug
9-Sep
9-Oct
9-Nov
9-Dec
10-Jan
10-Feb
10-Mar
10-Apr
10-May
10-Jun
10-Jul
10-Aug
10-Sep
10-Oct
10-Nov
10-Dec
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
3303
3360
3828
4257
5508
5205
5190
5058
5307
4563
4512
4434
4440
5178
5277
6411
7308
7275
Forcast
Ft
3303
3326
3527
3819
4494
4779
4943
4989
5116
4895
4742
4619
4547
4800
4991
5559
6258
MM-YY
11-Jan
11-Feb
11-Mar
11-Apr
11-May
11-Jun
11-Jul
11-Aug
11-Sep
11-Oct
11-Nov
11-Dec
12-Jan
12-Feb
12-Mar
12-Apr
12-May
12-Jun
Period Sales
t
St
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
7065
7497
7326
6207
5976
5874
5970
666
7575
8367
9051
9696
9594
9084
8955
8235
8055
7767
Forcast
Ft
Note: The alpha value = 0.4 and initial forcast F2=S1-3303 units
6258
6665
6825
7094
7187
6467
6230
6126
6342
6835
7448
8089
9732
9077
9080
9030
8712
8449
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