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A company uses simple exponential smoothing with α = 0.1 to forecast demand for boxes of rubber gloves. The forecast for this week was 237 boxes and the actual demand was 205.
a) What is your forecast for the next week?
b) What is your forecast for three weeks from now?
c) If the cumulative sum of the forecast errors before this week was 23 and the estimate of the mean absolute deviation was 10.6, do you feel that forecasting system is doing a good job? Explain.
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