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:
January
23.3
March
30.3
February
72.3
April
15.5
a. Determine the one-step-ahead forecasts for February through May using Exponential smoothing with a smoothing constant of α = 0.15.
b. Repeat the calculation in part (a) for a value of α = 0.40.
c. Compute the MSE for the forecasts obtained in parts (a) and (b) for February through April. Which value of α gave more accurate based on MSE