(See Solution) Passenger miles flown on Northeast Airlines, a commuter firm serving the Boston hub, are as follows for the past 12 weeks: WEEK ACTUAL PASSENGER
Question: Passenger miles flown on Northeast Airlines, a commuter firm serving the Boston hub, are as follows for the past 12 weeks:
| WEEK | ACTUAL PASSENGER MILES (1,000S) | WEEK | ACTUAL PASSENGER MILES (1,000S) |
| 1 | 17 | 7 | 20 |
| 2 | 21 | 8 | 18 |
| 3 | 19 | 9 | 22 |
| 4 | 23 | 10 | 20 |
| 5 | 18 | 11 | 15 |
| 6 | 16 | 12 | 22 |
- Assuming an initial forecast for week 1 of 17,000 miles, use exponential smoothing to compute miles for weeks 2 through 12. Use a =0.2.
- What is the MAD for this model?
- Compute the RSFE and tracking signals. Are they within acceptable limits?
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