Use Solver to Determine the Alpha That Minimizes the MAD

question 62

Multiple Choice

Use Solver to determine the alpha that minimizes the MAD for the ten period forecast for the data that appear in this table. Use the actual demand as the forecast for period 1 and then use exponential smoothing. $$\begin{array} { | c | c | } \hline \text { Period } & \text { Demand } \\\hline 1 & 300 \\\hline 2 & 250 \\\hline 3 & 200 \\\hline 4 & 500 \\\hline 5 & 128 \\\hline 6 & 184 \\\hline 7 & 166 \\\hline 8 & 191 \\\hline 9 & 167 \\\hline 10 & 177 \\\hline\end{array}$$

• A) 0.2
• B) 0.3
• C) 0.4
• D) 0.5

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Definitions:

Moldable

Capable of being shaped or formed; often refers to materials that can be designed into different forms through pressure or heat.

Explosions

Rapid increases in volume and release of energy in an extreme manner, usually with the generation of high temperatures and the release of gases.

Combustion Reactions

Chemical reactions that occur when a substance reacts with oxygen, releasing energy in the form of heat and light.

Oxygen Source

Any material or device that produces oxygen, used in various industrial and medical applications.