Explanation about Forecasting Techniques: Exponential Smoothing
YEAR 1 2 3 4 5 6 7 8 9 10 11
DEMAND 7 9 5 9 13 8 12 13 9 11 7
Problem- Develop a forecast for year 2 through 12 using exponential smoothing with a = .4 and a forecast for year 1 of 6. Plot your new forecast on a graph with the actual data and the native forecast. Based on a visual inspection, which forecast is better?
I need helpto explain the forecasting technique and draw a new forecast on a graph with the help of actual information and the native forecast.