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With the gasoline time series data from Table 15.1, show the exponential smoothing forecasts using a = 0.1.
a. Applying the MSE measure of forecast accuracy, would you prefer a smoothing constant of a = 0.1 or a = 0.2 for the gasoline sales time series?
b. Are the results the same if you apply MAE as the measure of accuracy?
c. What are the results if MAPE is used?
Text Book: An Introduction to Management Science: Quantitative Approaches to Decision. By David Anderson, Dennis Sweeney, Thomas Williams, Jeffrey Camm, James Cochran.
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ou have received a call from the manager of a firm where you helped set up a forecasting system. Illustrate what would you suggest.
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Identify potential solutions to those problems. Here, you can feel free to brainstorm and merely list various solutions to the problems that you identify.
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