Question: Passenger miles flown on Northeast Airlines, a commuter firm serving the Boston hub, are as follows for the past 12 weeks:

a) 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.

b) What is the MAD for this model?

c) Compute the RSFE and tracking signals. Are they within acceptable limits?