John is using an exponential smoothing model with seasonality.What is MAD value? The base value smoothing constant is 0.2 while the seasonality constant is 0.3.Use the first year to initialize the model.
$$\begin{array} { c c c c c c c c c }
\text { Quarter } & 1 & 2 & 3 & 4 & 5 & 6 & 7 & 8 \
\hline \text { Demand } & 40 & 250 & 190 & 110 & 69 & 330 & 320 & 280
\end{array}$$
A) 80.01
B) 67.72
C) 92.13
D) 103.76

Question

John is using an exponential smoothing model with seasonality.What is MAD value? The base value smoothing constant is 0.2 while the seasonality constant is 0.3.Use the first year to initialize the model.
$$\begin{array} { c c c c c c c c c } 
\text { Quarter } & 1 & 2 & 3 & 4 & 5 & 6 & 7 & 8 \
\hline \text { Demand } & 40 & 250 & 190 & 110 & 69 & 330 & 320 & 280
\end{array}$$
A) 80.01
B) 67.72
C) 92.13
D) 103.76

Quizplus · Accepted Answer

The correct answer is A.The MAD value is 80.01. This is calculated by taking the average of the absolute differences between the actual demand and the forecasted demand. The forecasted demand is calculated using the exponential smoothing model with seasonality. The base value smoothing constant is 0.2 while the seasonality constant is 0.3. The model is initialized using the first year of data.

John Is Using an Exponential Smoothing Model with Seasonality A) 8001 B) 67

John Is Using an Exponential Smoothing Model with Seasonality A) 8001
B) 67