Assignment:
Develop a single exponential smoothing model using α = 0.20. Use as a starting value the average of the first 6 years’ data. Determine the forecasted value for year 2010.
a. Compute the MAD for this model.
b. Plot the forecast values against the actual data.
c. Use the same starting value but try different smoothing constants (say, 0.05, 0.10, 0.25, and 0.30) in an effort to reduce the MAD value.
d. Is it possible to answer part d of Problem 51 using this forecasting technique? Explain your answer.
Your answer must be typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.