Question

The following table contains the demand from the last 10 months:

MONTH	ACTUAL DEMAND
1	27
2	29
3	33
4	41
5	44
6	43
7	44
8	46
9	47
10	41

a. Calculate the single exponential smoothing forecast for these data using an α of 0.30 and an initial forecast (F₁) of 27. (Round your intermediate calculations and answers to 2 decimal places.)

Month	Exponential Smoothing
1	27
2	27
3	27.6
4	29.22
5	32.75
6	36.13
7	38.19
8	39.93
9	41.75
10	43.33

b. Calculate the exponential smoothing with trend forecast for these data using an α of 0.30, a δ of 0.40, an initial trend forecast (T₁) of 1.00, and an initial exponentially smoothed forecast (F₁) of 26. (Round your intermediate calculations and answers to 2 decimal places.)

Month	FITt
1
2
3
4
5
6
7
8
9
10

Calculate the mean absolute deviation (MAD) for the last nine months of forecasts. (Round your intermediate calculations and answers to 2 decimal places.)

	MAD
Single exponential smoothing forecast
Exponential smoothing with trend forecast

Which is best?

	Single exponential smoothing forecast
	Exponential smoothing with trend forecast

Part A is already complete and correct I just need help with the rest.

Answer 1

For exponential smoothing,

Ft+1 = alpha*At-1 + (1-alpha)*Ft-1