Jim's department at a local department store has tracked the sales of a product over the last ten weeks. Forecast demand using exponential smoothing with an alpha of 0.4, and an initial forecast of 28.0 for period 1. Calculate the MAD. What do you recommend?
$$\begin{array} { | c | c | }
\hline \text { Period } & \text { Demand } \
\hline 1 & 24 \
\hline 2 & 23 \
\hline 3 & 26 \
\hline 4 & 36 \
\hline 5 & 26 \
\hline 6 & 30 \
\hline 7 & 32 \
\hline 8 & 26 \
\hline 9 & 25 \
\hline 10 & 28 \
\hline
\end{array}$$

Question

Jim's department at a local department store has tracked the sales of a product over the last ten weeks. Forecast demand using exponential smoothing with an alpha of 0.4, and an initial forecast of 28.0 for period 1. Calculate the MAD. What do you recommend?
 $$\begin{array} { | c | c | } 
\hline \text { Period } & \text { Demand } \
\hline 1 & 24 \
\hline 2 & 23 \
\hline 3 & 26 \
\hline 4 & 36 \
\hline 5 & 26 \
\hline 6 & 30 \
\hline 7 & 32 \
\hline 8 & 26 \
\hline 9 & 25 \
\hline 10 & 28 \
\hline
\end{array}$$

Quizplus · Accepted Answer

The Answer of Jim's department at a local department store has tracked the sales of a product over the last ten weeks. Forecast demand using exponential smoothing with an alpha of 0.4, and an initial forecast of 28.0 for period 1. Calculate the MAD. What do you recommend?
 $$\begin{array} { | c | c | } 
\hline \text { Period } & \text { Demand } \
\hline 1 & 24 \
\hline 2 & 23 \
\hline 3 & 26 \
\hline 4 & 36 \
\hline 5 & 26 \
\hline 6 & 30 \
\hline 7 & 32 \
\hline 8 & 26 \
\hline 9 & 25 \
\hline 10 & 28 \
\hline
\end{array}$$

Jim's Department at a Local Department Store Has Tracked the Sales