END-OF-CHAPTER PROBLEMS

4.5)


4.9)


Since exponential smoothing with alpha = 0.5 has the lowest MAD it would be preferred.

4.22)


4.23)


Note:  Management provided its forecasts for only the last four months.  However, we could provide Naive forecasts for the months of August through June, and compute MAD and MAPE based on those months:

Since both the MAD and MAPE have improved we would still be inclined to prefer the Naive technique.


4.31)

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