The manager of a small health clinic would like to use exponential smoothing to

Question

The manager of a small health clinic would like to use exponential smoothing to forecast demand for laboratory services in the facility. However, she is not sure whether to use a high or low value of. To make her decision, she would like to compare the forecast accuracy of a high and low on historical data. She has decided to use an =0.7 for the high value and =0.1 for the low value. Given the following historical data, which do you think would be better to use? (Round answers to 2 decimal place, e.g. 15.25)

Explanation / Answer

using mintab

at alpha =0.1

Single Exponential Smoothing for C1

Data    C1
Length 6

Smoothing Constant

0.1

Accuracy Measures

MAPE    3.608
MAD    12.580
MSD   241.980

Single Exponential Smoothing Plot for C1

at alpha =0.7

Data    C1
Length 6

Smoothing Constant

0.7

Accuracy Measures

MAPE    4.793
MAD    16.675
MSD   317.106

Single Exponential Smoothing Plot for C1

The lower the MAD value, the higher the forecast accuracy

So the low value of =0.1 as higher accuracy then high value of =0.7

because the MAD value for =0.7 is higher then MAD value for =0.1

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.