Lenovo uses the ZX81 chip in some of its laptop computers Th

Lenovo uses the ZX-81 chip in some of its laptop computers. The prices for the chip during the last 12 months were as follows Month January February March April May June Price Per Chip $1.85 $1.61 $1.60 $1.85 $1.90 $1.95 Price Per Chip S1.80 51.83 51.60 1.57 51.62 51.75 Month July August October This exercise contains only partd With = 0.1 and the initial forecast for October of S1.81, using exponential smoothing the forecast for periods 11 and 12 is (round your responses to two decimal places) Month Oct Nov Dec Forecast $1.81 1.79 1.77 With = 0.3 and the initial forecast for October of $1.77, using exponential smoothing the forecast for periods 11 and 12 is round your responses to two decimal places) Month Oct Nov Dec Forecast $1.77 171 1.68 With = 0.5 and the initial forecast for October of S1 72, using exponential smoothing the forecast for periods 11 and 12 is (round your responses to two decimal places) Month Oct Nov Dec Forecast $1.72 1.65 1.63 0 1 and the initial forecast for October-S1 81 is $ 0.14 (round your response to three decm Based on the months of October, November and December the mean absolute deviation using exponential smoothing where olaces) (round your response to three decimal Based on the months of October, November and December, the mean absolute deviation using exponential smoothing where -0 3 and the initial forecast for October-S1 77 is $ olaces

Solution

Please find below table which captures the price per chip as well as forecast value for three months e.g Oct, Nov and Dec.

Please note , Absolute deviation for any month = Absolute difference in values between price per chip and forecast value.

Month

Price per chip ( $)

Forecast value ( $)

Absolute deviation ( $)

Oct

1.57

1.77

0.20

Nov

1.62

1.71

0.09

Dec

1.75

1.68

0.07

Total :

0.36

Thus sum of Absolute deviation values for three months e.g Oct/ Nov/ Dec = 0.36

Therefore, Mean absolute deviation ( MAD ) = 0.36/ 3 = 0.12

MEAN ABSOLUTE DEVIATION = $ 0.12

Month	Price per chip ( $)	Forecast value ( $)	Absolute deviation ( $)
Oct	1.57	1.77	0.20
Nov	1.62	1.71	0.09
Dec	1.75	1.68	0.07
		Total :	0.36