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    Adjusted Exponential Smoothing Model

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    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)

    1 4260
    2 4510
    3 4050
    4 3720
    5 3900
    6 3470
    7 2890
    8 3100

    Develop an adjusted exponential smoothing model (α = 0.30, β = 0.20) and a linear trend line model, and compare the forecast accuracy of the two using MAD. Indicate which forecast seems to be most accurate.

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    Solution Summary

    The solution gives detailed steps on forecasting coat sales using Excel under two models: adjusted exponential smoothing and linear trend line.