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PASSENGER MILES FLOWN ON NORTHEAST AIRLINES, A COMMUTER FIRM SERVING THE BOSTON HUB, ARE AS FOLLOWS FOR THE PAST 12 WEEKS:
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ACTUAL PASSENGER ACTUAL PASSENGER
WEEK MILES (1000S) WEEK MILES (1000S)
1 17 7 20
2 21 8 18
3 19 9 22
4 23 10 20
5 18 11 15
6 16 12 22
A)ASSUMING AN INITIAL FORECAST FOR WEEK 1 OF 17000 MILES, USE EXPONENTIAL SMOOTHING TO COMPUTE MILES FOR WEEKS 2 THROUGH 12. USE Ox = 0.2
B) WHAT IS THE MAD FOR THIS MODEL?
C) COMPUTE THE RSFE AND TRACKING SIGNALS. ARE THEY WITHIN ACCEPTABLE LIMITS?
