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recasting Questions (Practi amoodle/pluginfile.php/3038383/mod.resource/content/

ID: 346636 • Letter: R

Question

recasting Questions (Practi amoodle/pluginfile.php/3038383/mod.resource/content/1/Forecasting%20Questions%20%28Practice%29.pdf G Home I Chegg.com D MyConcordia-Conc.. N http//www.netfix.co... Trh Dashboard D Recipient info - Tran... M The linear trend line forecast appears to be the most accurate. Q4 (Ref: Q.12-15 p568): The Willow River Mining Company mines and ships coal. It has experienced the following demand for coal during the past eight years Year Coat Sales (tons 4260 4510 4050 3720 3900 3470 2890 Develop an adjusted exponentially smoothed model ( = 0.30, 8-0.20) and a linear trend line model and Compare the forecast accuracy of the two using MAD, and indicate which forecast seems to be most accurate. Adjusted Exponentially Smoothed Forecast (= 0.30, =0.20) Linear Trend Line y= 4,690 -211.67x Exponentially Smoothed Forecast Year Sales (= 0.30) 4,260.00 4,510.00 4,050.00 4 3,720.00 5 3,900.00 6 3,470.00 7 2,890.00 83,100.00 4,260.00 4,335.00 4,249.50 4,090.65 4,033.45 3,864.42 3,572.09 4,260.00 4,350.00 4,244.40 4,054.80 ,993.34 3,798.52 3,460.91 478.33 4,266.67 4,055.00 3,843.33 3,631.67 3,420.00 3,208.33 2,996.67 Adjusted Exponentially Smoothed Forecast 431.71 2.522 Linear Trend Line 166.25 MAD The linear trend line forecast appears to be the most accurate. 05 (Ref Q 12-17 p568): Townside Food Vending operates vending machines in office buildings, the airport, bus

Explanation / Answer

Adjusted Exponentially Smoothened Forecast Values are as below:

Mean is calculated as = (4260+4350+4244.4+4054.8+3993.34+3798.52+3460.91+3313.19)/8

= 3934.395

Now, MAD is calculated as = [ |4260-3934.395| + |4350-3934.395| + |4244.4-3934.395| + |4054.8-3934.395| + |3993.34-3934.395| + |3798.52-3934.395| + |3460.91-3934.395| + |3313.19-3934.395| ] / 8

= [325.605+415.605+310.005+120.405+58.945+135.875+473.485+621.205] / 8

= 307.64

4260 4350 4244.4 4054.8 3993.34 3798.52 3460.91 3313.19