Introduction to Management Science 12th Edition by Bernard Taylor

Exercise 25

The Bayside Fountain Hotel is adjacent to County Coliseum, a 24,000-seat arena that is home to the city's professional basketball and ice hockey teams and that hosts a variety of concerts, trade shows, and conventions throughout the year. The hotel has experienced the following occupancy rates for the past 9 years, since the coliseum opened:
Compute an exponential smoothing forecast with =.20, an adjusted exponential smoothing forecast with =.20 and =.20, and a linear trend line forecast. Compare the three forecasts, using MAD and average error ( E ), and indicate which seems to be most accurate.