1. Historical demand for Peeps is as displayed in the table.
Month Demand
January 11
February 18
March 31
April 39
May 44
June 53
July 67
August 82
September 96
Develop forecasts from June through October using these techniques: moving average of two
period, simple exponential smoothing with an alpha of 0.8, and Holt's method with alpha=0.2
and beta=0.1. For the exponential smoothing model assume that the forecast for May is the
actual demand for May. For Holt's model, the level and trend for May are assumed to be 44 and
12. Judge which forecast method is the best based on MAD