Share
Explore BrainMass

Exp smoothing forecast with MAD, RSFE, Tracking signal

PASSENGER MILES FLOWN ON NORTHEAST AIRLINES, A COMMUTER FIRM SERVING THE BOSTON HUB, ARE AS FOLLOWS FOR THE PAST 12 WEEKS:

ACTUAL PASSENGER ACTUAL PASSENGER
WEEK MILES (1000S) WEEK MILES (1000S)
1 17 7 20
2 21 8 18
3 19 9 22
4 23 10 20
5 18 11 15
6 16 12 22

A)ASSUMING AN INITIAL FORECAST FOR WEEK 1 OF 17000 MILES, USE EXPONENTIAL SMOOTHING TO COMPUTE MILES FOR WEEKS 2 THROUGH 12. USE Ox = 0.2
B) WHAT IS THE MAD FOR THIS MODEL?
C) COMPUTE THE RSFE AND TRACKING SIGNALS. ARE THEY WITHIN ACCEPTABLE LIMITS?

Solution Summary

This posting contains solution to following problem on forecasting for North east airlines.

$2.19