Assignment:
The manager of a small health dime would like to use exponential smoothing to forecast demand for emergency services m the facility. However, she is not sure whether to use a high or low value of a. To make her decision, she would like to compare the forecast accuracy of a high and low a on historical data. She has deeded to use an a = 0 for the high value and a = 0.1 for the low value
For both alpha values, enter exponential smoothing forecasts for weeks 2 to 6, and calculate the MAO for each alpha value. Initialize the computations using the naive method.
Demand
Week (in patients serviced)
1 430
2 289
3 367
4 470
5 468
6 365
(a) Which value of a do you think would be better to use? If would be better to use a =
(b) Is your answer the same as in Problem 5?