A new car dealer has been using exponential smoothing with an alpha of .2 to forecast weekly new car sales. Given the data below, would a naive forecast have provided greater accuracy? Explain. Assume an initial exponential forecast of 60 units in period 2 . $$\begin{array} { l l }
\text { Period } & \text { Demand } \
\hline 1 & 57 \
2 & 62 \
3 & 58 \
4 & 60 \
5 & 60 \
6 & 56
\end{array}$$

Question

A new car dealer has been using exponential smoothing with an alpha of .2 to forecast weekly new car sales. Given the data below, would a naive forecast have provided greater accuracy? Explain. Assume an initial exponential forecast of 60 units in period 2 . $$\begin{array} { l l } 
\text { Period } & \text { Demand } \
\hline  1 & 57 \
2 & 62 \
3 & 58 \
4 & 60 \
5 & 60 \
6 & 56
\end{array}$$

Quizplus · Accepted Answer

The Answer of A new car dealer has been using exponential smoothing with an alpha of .2 to forecast weekly new car sales. Given the data below, would a naive forecast have provided greater accuracy? Explain. Assume an initial exponential forecast of 60 units in period 2 . $$\begin{array} { l l } 
\text { Period } & \text { Demand } \
\hline  1 & 57 \
2 & 62 \
3 & 58 \
4 & 60 \
5 & 60 \
6 & 56
\end{array}$$

A New Car Dealer Has Been Using Exponential Smoothing with an Alpha