Refer to Problem 1

question 54

Short Answer

Refer to problem 1. Develop a forecast for years 2 through 12 using exponential smoothing with α = 0.4 and a forecast for year 1 of 6. Plot your new forecast on a graph with the actual data and the naïve forecast. Based on a visual inspection, which forecast is better?

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Definitions:

Nonnegativity Constraints

Restrictions in mathematical modeling that require certain variables to be greater than or equal to zero.

Statements

Financial records that provide an overview of a company's financial condition, including the balance sheet, income statement, and cash flow statement.

Non-negativity Constraints

are mathematical conditions in linear programming that require the variables to be zero or positive, never negative.

Feasible Region

In optimization problems, the set of all possible points that satisfy the problem's constraints.