Question

In: Statistics and Probability

The monthly ambulatory visit shown in the Table below occurred in an outpatient clinic. month visits...

The monthly ambulatory visit shown in the Table below occurred in an outpatient clinic.

month visits
July 2160
august 2186
September 2246
october 2251
november 2243
december 2162
  1. Prepare a forecast for January visits, using the simple exponential smoothing method with α = 0.3.
  2. If α = 0.5, what is the predicted value for January visits?
  3. If α = 0.0, what is the predicted value for January visits
  4. If α = 1.0, what is the predicted value for January visits
  5. Which alpha produces the best forecast?

Solutions

Expert Solution

Solve using Excel:

Part a: α = 0.3.

α 0.3
Month Actual (A) Foercast (F) A-F (A-F)2
July 2160 2160.00 0.00 0.00
August 2186 2160.00 26.00 676.00
September 2246 2167.80 78.20 6115.24
October 2251 2191.26 59.74 3568.87
November 2243 2209.18 33.82 1143.66
December 2162 2219.33 -57.33 3286.43
January 2202.13
MSE 2465.03
Month Actual (A) Foercast (F) A-F (A-F)2
July 2160 =B3 =B3-C3 =D3^2
August 2186 =C3+$C$1*D3 =B4-C4 =D4^2
September 2246 =C4+$C$1*D4 =B5-C5 =D5^2
October 2251 =C5+$C$1*D5 =B6-C6 =D6^2
November 2243 =C6+$C$1*D6 =B7-C7 =D7^2
December 2162 =C7+$C$1*D7 =B8-C8 =D8^2
January =C8+$C$1*D8
MSE =AVERAGE(E3:E8)

January = 2202.13

Part b: α = 0.5

α 0.5
Month Actual (A) Foercast (F) A-F (A-F)2
July 2160 2160.00 0.00 0.00
August 2186 2160.00 26.00 676.00
September 2246 2173.00 73.00 5329.00
October 2251 2209.50 41.50 1722.25
November 2243 2230.25 12.75 162.56
December 2162 2236.63 -74.63 5568.89
January 2199.31
MSE 2243.12
Month Actual (A) Foercast (F) A-F (A-F)2
July 2160 =H3 =H3-I3 =J3^2
August 2186 =I3+$I$1*J3 =H4-I4 =J4^2
September 2246 =I4+$I$1*J4 =H5-I5 =J5^2
October 2251 =I5+$I$1*J5 =H6-I6 =J6^2
November 2243 =I6+$I$1*J6 =H7-I7 =J7^2
December 2162 =I7+$I$1*J7 =H8-I8 =J8^2
January =I8+$I$1*J8
MSE =AVERAGE(K3:K8)

January = 2199.31

Part c: α = 0.0

α 0
Month Actual (A) Foercast (F) A-F (A-F)2
July 2160 2160.00 0.00 0.00
August 2186 2160.00 26.00 676.00
September 2246 2160.00 86.00 7396.00
October 2251 2160.00 91.00 8281.00
November 2243 2160.00 83.00 6889.00
December 2162 2160.00 2.00 4.00
January 2160.00
MSE 3874.33
Month Actual (A) Foercast (F) A-F (A-F)2
July 2160 =N3 =N3-O3 =P3^2
August 2186 =O3+$O$1*P3 =N4-O4 =P4^2
September 2246 =O4+$O$1*P4 =N5-O5 =P5^2
October 2251 =O5+$O$1*P5 =N6-O6 =P6^2
November 2243 =O6+$O$1*P6 =N7-O7 =P7^2
December 2162 =O7+$O$1*P7 =N8-O8 =P8^2
January =O8+$O$1*P8

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