You have become concerned about the amount of copier paper used in your office after repeatedly running out of supplies. Your assistant keeps track of the number of reams (packages of 500 sheets) for 24 weeks:
Week 1 2 3 4 5 6 7 8 9 10 11 12
Reams of paper 258 285 299 254 256 255 216 233 243 303 258 266
Week 13 14 15 16 17 18 19 20 21 22 23 24
Reams of paper 272 303 226 244 225 284 208 231 318 226 251 220
Beginning with the errors calculated in week 7, calculate MFE and MAD for exponential smoothing forecast model with smoothing constants of 0.05, 0.1, and 0.25. Assume a forecast for week 1 of 230 reams: (Round your intermediate calculations and final answers to 1 decimal place.)
Exponential Smoothing Forecast
α = 0.05 α = 0.1 α = 0.25
MFE
MAD