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Forecasting_problem

Forecasting_problem - α = 0.4 Assume that you are given a...

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Forecasting Sample Problem : 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. Show each step clearly while answering the questions below. Month Sales January 23.3 February 30.3 March 25.3 April 35.3 a. Determine the forecast for May using Linear trend equation. b. Determine the forecast for May using Exponential smoothing with α
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Unformatted text preview: α = 0.4 Assume that you are given a forecast of 25 for the month of January (Hint: Due to this given information, you do not have to use Naïve forecast as a starting point for February). c. Compute the value of forecast accuracy with one of the forecast metrics (MAD or MSE) for the Exponential smoothing approach in (b)? (Use one of the metrics, MAD or MSE. You do not have to present results with both of them). (30 points)...
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