Exponential Smoothing
Passenger miles flown on Northeast Airlines, a commuter firm serving the Boston hub, are as follows for the past 12 weeks:
|
WEEK |
ACTUAL PASSENGER MILES (1,000S) |
WEEK |
ACTUAL PASSENGER MILES (1,000S) |
| 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 17,000 miles, use exponential smoothing to compute miles for weeks 2 through 12. Use a =0.2.
b) What is the MAD for this model?
c) Compute the RSFE and tracking signals. Are they within acceptable limits?
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