Question: Valles Global Industries has a division that operates a fishing fleet that fishes for Alaskan cod. In the table entitled "Cod Catch" in the attached file, you will find the history of the fleet's catches over 24 months. Develop a forecasting model for the fleet that illustrates the forecast for 24 months plus month 25. Use a smoothing factor (alpha) of .1. Show how you calculated each forecast and the forecast error. Discuss the smoothing factor-will changing this factor improve your forecast? How?
Cod catch (in tons):
| Month |
Year 1 |
Year 2 |
| January |
362 |
276 |
| February |
381 |
334 |
| March |
317 |
394 |
| April |
297 |
334 |
| May |
399 |
384 |
| June |
402 |
314 |
| July |
375 |
344 |
| August |
349 |
337 |
| September |
386 |
345 |
| October |
328 |
362 |
| November |
389 |
314 |
| December |
343 |
365 |