Month January February March April Ma June Price Per Chip 51.85 $1.61 $1.60 $1.8

ID: 413955 • Letter: M

Question

Month January February March April Ma June Price Per Chip 51.85 $1.61 $1.60 $1.85 $1.90 $1.95 Price Per Chip $1.80 $1.83 $1.60 $1.57 $1.62 $1.75 Month July August October December This exercise contains only part d. with -0.1 and the initial forecast for October of $1 81 using exponential smoothing the forecast for periods 11 and 12 is round your responses to two dec mal piaces Month Oct Nov Dec Forecast S1.81 179 1.77 With = 0.3 and the initial forecast for October of $1 77, using exponential smoothing, the forecast for periods 11 and 12 is round your responses to two decimal places). Month Oct Nov Dec Forecast $1.77 1.71 1.68 With -0.5 and the initial forecast for October of $1.72, using exponential smoothing, the forecast for periods 11 and 12 is round your responses to two decimal places Month Forecast $1.72 1.65 1.63 Oct No Dec Based on he months o October, November places) and December, the mean absolute deviation using exponent a smoothing where .1 and he in a forecast or October-$1.81 s $ ound your esponse to three dec mal

Explanation / Answer

Please find below table which captures the price per chip as well as forecast value for three months e.g Oct, Nov and Dec.

Please note , Absolute deviation for any month = Absolute difference in values between price per chip and forecast value.

Month

Price per chip ( $)

Forecast value ( $)

Absolute deviation ( $)

Oct

1.57

1.81

0.24

Nov

1.62

1.79

0.17

Dec

1.75

1.77

0.02

Total :

0.43

Thus sum of Absolute deviation values for three months e.g Oct/ Nov/ Dec = 0.43

Therefore, Mean absolute deviation ( MAD ) = 0.43/ 3 = 0.143 ( 0.14 rounded to 2 decimal places)

MEAN ABSOLUTE DEVIATION = $ 0.14