John Is Using an Exponential Smoothing Model with Seasonality A) 8001
B) 67

Multiple Choice

John is using an exponential smoothing model with seasonality.What is MAD value? The base value smoothing constant is 0.2 while the seasonality constant is 0.3.Use the first year to initialize the model.
$$\begin{array} { c c c c c c c c c } \text { Quarter } & 1 & 2 & 3 & 4 & 5 & 6 & 7 & 8 \\\hline \text { Demand } & 40 & 250 & 190 & 110 & 69 & 330 & 320 & 280\end{array}$$

A) 80.01
B) 67.72
C) 92.13
D) 103.76