Purchase Solution

Single order exponential smoothing

Not what you're looking for?

Ask Custom Question

United Airways has tried out single order exponential smoothing for forecasting passenger demand. Below are recent results using alpha = 0.2, 0.4. and 0.6. Which alpha is best, based on this limited data?

Actual Forecast with Alpha Equal to
Period Passengers 0.2 0.4 0.6

-3 4,200 3,078 3,184 3,210
-2 4,900 3,302 4,090 3,804
-1 3,500 3,622 4,114 4,462

A. 0.2
B. 0.4
C. 0.6
D. any of the above (A,B, C) work equally well

Please explain

Purchase this Solution
Solution Summary

The solution determines the value of alpha which is the best for forecasting passenger demand.

Purchase this Solution
Free BrainMass Quizzes
Understanding the Accounting Equation

These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.

Balance Sheet

The Fundamental Classified Balance Sheet. What to know to make it easy.

Academic Reading and Writing: Critical Thinking

Importance of Critical Thinking

Managing the Older Worker

This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce

IPOs

This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)

View More Free Quizzes
Related BrainMass Solutions

  • Single Exponential Smoothing

    The expert examines single exponential smoothing.

  • Forecast Analysis

    Develop spreadsheet models for forecasting prices using single moving average and single exponential smoothing. b.

  • Expoentail smoothing

    smoothing with ( =0.30 ) =5.705214/6=0.9508 Exponential smoothing with ( =0.70 ) =5.5332/6=0.922 Moving average of order 3 =8.9611/6 =1.493 Clearly mean residual sum of squares is minimum for exponential smoothing with  =0.70

  • Exponential smoothing forecast

    The formula for single exponential smoothing is: S(t+ 1)= St + a (error) where a is the exponential smoothing coefficient which is used to weight the error of the last observation (St) appropriately, so as to give us a more accurate value for the current

  • Compariosn of forecasting methods

    Calculate the single exponential smoothing forecast for period 10-12 using an initial forecast (F1) of 61 and Alpha of 0.30. d.

  • Simple Exponential Smoothing

    In contrast to the Linear Regression method, the Simple Exponential Smoothing method is used to smooth a time series. Simple Exponential Smoothing is also known as Single Exponential Smoothing.

  • Time Series Analysis and Forecast

    Based on what you see, which of the exponential smoothing models do you think should be used for forecasting? Why? b. Use simple exponential smoothing to forecast these data, using no holdout period and requesting 12 months of future forecasts.

  • Time series using forecast accuracy and suitability of methods

    For single exponential smoothing, first we identify which value of alpha provides the best fit.

  • Forecasting

    163191 Forecasting- weighted moving average/single exponential smoothing Please help... b & c can be done with the attached template, but I do not know how to implement the data...

View More Related Solutions