(i) List common time-series forecasting models. Explain simple exponential smoothing method of forecasting demand. What are its limitations?
(ii) The monthly forecast and demand values of a firm are given below:
|
Month
|
Forecast units
|
Demand units
|
|
Jan
|
100
|
97
|
|
Feb
|
100
|
93
|
|
Mar
|
100
|
110
|
|
Apr
|
100
|
98
|
|
May
|
102
|
130
|
|
Jun
|
104
|
133
|
|
Jul
|
106
|
129
|
|
Aug
|
108
|
138
|
|
Sept
|
110
|
136
|
|
Oct
|
112
|
124
|
|
Nov
|
114
|
139
|
|
Dec
|
116
|
125
|
Calculate Tracking Signal for each month. Comment on the forecast model.