This post covers Week Two Assignment, as detailed below.
Turnitin™
This assignment will be
submitted to Turnitin™.
Instructions
Assignment
2 of 2:
Nelson
Fabricators sells a portable EKG machine. The sales manager requires a weekly
forecast of the portable EKG machine so that he can schedule production. The
manager uses exponential smoothing with α = 0.30.
Data
template: EKG Machines – Week 2 Assignment 2 template.xlsx
1.
Forecast the number of machines at the end of week 17.
2.
Calculate the bias and MAD.
3.
Recreate your forecast with α = 0.70. Compare the MAD to your previous
answer. Which forecast is better?
4.
Using SOLVER, compute the forecast with the minimum MAD by changing α.
What characteristic of the data directly influences your optimal
answer? Briefly discuss the benefit of optimizing α.
Provide
your solution and responses in the attached template, using ONLY the space
provided.