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You must decide among three different forecasting techniques for weekly demand of personal computer: an exponential smoothing with α=0.25, and the naïve approach.
Weekly demand of personal computer
Period Actual
1 33
2 45
3 49
4 55
5 54
6 53
7 46
8 59
9 62
10 65
a. Forecast the demands for all possible periods using two methods.
b. Using MSE error calculations comment on which of the two methods has the greater overall accuracy.
c. Is it possible to determine whether these forecasting methods are overestimating or underestimating the demand? Explain
d. What are the implications of overestimation or underestimation of the demand? Discuss.
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