Sales of Volkswagen's popular Beetle have grown steadily at auto dealerships in Nevada during the past 5 years (see table below).
Using exponential smoothing with a smoothing constant (a) of 0.30 and a starting forecast of 420.00, the following sales forecast has been developed:
|
Year
|
Sales
|
Forecasted Sales
|
|
1
|
460
|
420.00
|
|
2
|
510
|
432.00
|
|
3
|
520
|
455.40
|
Using smoothing constants of 0.60 and 0.90, develop forecasts for the sales of VW Beetles.
Use MAD to determine which of the three smoothing constants ?(0.30, 0.60?, or 0.90) gives the most accurate forecast.
The MAD for a forecast developed using exponential smoothing with alphaa equals=0.30 is ____ sales. ?(Round your response to two decimal? places.)