Use Solver to determine the alpha that minimizes the MAD for the ten period forecast for the data that appear in this table. Use the actual demand as the forecast for period 1 and then use exponential smoothing. $$\begin{array} { | c | c | }
\hline \text { Period } & \text { Demand } \
\hline 1 & 300 \
\hline 2 & 250 \
\hline 3 & 200 \
\hline 4 & 500 \
\hline 5 & 128 \
\hline 6 & 184 \
\hline 7 & 166 \
\hline 8 & 191 \
\hline 9 & 167 \
\hline 10 & 177 \
\hline
\end{array}$$
A) 0.2
B) 0.3
C) 0.4
D) 0.5

Question

Use Solver to determine the alpha that minimizes the MAD for the ten period forecast for the data that appear in this table. Use the actual demand as the forecast for period 1 and then use exponential smoothing. $$\begin{array} { | c | c | } 
\hline \text { Period } & \text { Demand } \
\hline 1 & 300 \
\hline 2 & 250 \
\hline 3 & 200 \
\hline 4 & 500 \
\hline 5 & 128 \
\hline 6 & 184 \
\hline 7 & 166 \
\hline 8 & 191 \
\hline 9 & 167 \
\hline 10 & 177 \
\hline
\end{array}$$
A) 0.2
B) 0.3
C) 0.4
D) 0.5

Quizplus · Accepted Answer

The Answer of Use Solver to determine the alpha that minimizes the MAD for the ten period forecast for the data that appear in this table. Use the actual demand as the forecast for period 1 and then use exponential smoothing. $$\begin{array} { | c | c | } 
\hline \text { Period } & \text { Demand } \
\hline 1 & 300 \
\hline 2 & 250 \
\hline 3 & 200 \
\hline 4 & 500 \
\hline 5 & 128 \
\hline 6 & 184 \
\hline 7 & 166 \
\hline 8 & 191 \
\hline 9 & 167 \
\hline 10 & 177 \
\hline
\end{array}$$
A) 0.2
B) 0.3
C) 0.4
D) 0.5

Use Solver to Determine the Alpha That Minimizes the MAD