Assignment:
Q1. Given the following weekly demand figures, what is the MAD at the end of week 5?
Week Demand Forecast
1 100 120
2 120 130
3 110 120
4 130 125
5 160 145
A. 4.0
B. 11.8
C. 12.0
D. 13.0
E. 15.0
Q2. You are given that the forecast for period 6 was 70 while the actual demand for period 6 was 76. The forecast for period 7 has been calculated to be 75.8. What must alpha equal (rounded to 4 decimals) if a simple exponential smoothing forecast method is being used?
A. 0.0042
B. 0.9667
C. 0.0400
D. 0.0967
E. None of the above
Provide complete and step by step solution for the question and show calculations and use formulas.