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.

Chapter13: Regression And Forecasting Models

Section13.7: Exponential Smoothing Models

Problem 27P: The file P13_27.xlsx contains yearly data on the proportion of Americans under the age of 18 living...

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