Question: The manager Petroco Service station wants to forecast the demand for unleaded gasoline next month so that the proper number of gallons can be ordered from the distributor. The owner has accumulated the following data on demand for unleaded gasoline form sales during the past 10 months.

Month Gasoline demanded (gallons)

a) Compute an exponentially smoothed forecast, using an α value of .30

b) Compute an adjusted exponentially smoothed forecast (with α=.30 and β=.20)

c) Compute the two forecasts by using MAPD and indicate which seems to be more accurate.