Question: Wamaco Corporation uses the same simple exponential smoothing forecasting model for all of its products. The model has yielded the following weekly forecasts:
a. What value of a is Wamaco Corp using in its forecasting model?
b. Calculate the forecast for period 7 for product 1 and product 2.
c. Using the first six periods of data, calculate the Bias (MFE), MAD, MPE, and MAPE. Does the forecasting model provide about the same bias and accuracy for both products? What would you recommend?