Th e manager of a small health clinic would like to useexponential smoothing to forecast demand for laboratory servicesin the facility. However, she is not sure whether to use a high orlow value of α . To make her decision, she would like to comparethe forecast accuracy of a high and low α on historical data. Shehas decided to use an α = 0.7 for the high value and α = 0.1 forthe low value. Given the following historical data, which do youthink would be better to use? Week Demand (lab requirements)1 3302 3503 3204 3705 3686 343
Th e manager of a small health clinic would like to useexponential smoothing to forecast demand for laboratory servicesin the facility. However, she is not sure whether to use a high orlow value of α . To make her decision, she would like to comparethe forecast accuracy of a high and low α on historical data. Shehas decided to use an α = 0.7 for the high value and α = 0.1 forthe low value. Given the following historical data, which do youthink would be better to use? Week Demand (lab requirements)1 3302 3503 3204 3705 3686 343
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter13: Regression And Forecasting Models
Section13.6: Moving Averages Models
Problem 22P: The file P13_22.xlsx contains total monthly U.S. retail sales data. While holding out the final six...
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Question
Th e manager of a small health clinic would like to use
exponential smoothing to
in the facility. However, she is not sure whether to use a high or
low value of α . To make her decision, she would like to compare
the forecast accuracy of a high and low α on historical data. She
has decided to use an α = 0.7 for the high value and α = 0.1 for
the low value. Given the following historical data, which do you
think would be better to use?
Week Demand (lab requirements)
1 330
2 350
3 320
4 370
5 368
6 343
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