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Lenovo uses the ZX-81 chip in some of its laptop computers. The prices for the chip during the last 12 months were as follows: (Month) Price Per Chip
September $1.60
October $1.57
November $1.62
December $1.75
This exercise contains only part d.
With alphaα = 0.5 and the initial forecast for October of $1.72 using exponential smoothing, the forecast for periods 11 and 12 is
Month: OCT NOV DEC
Forecast: $1.72 1.65 1.64
Based on the months of October, November, and December, the mean absolute deviation using exponential smoothing where alpha α = 0.5 and the initial forecast for October= $1.72 is _____
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