Given an actual demand this period of 103, a forecast value for this period of 99, and an alpha of .6, what is the exponential smoothing forecast for next period?
A) 96.6
B) 97.4
C) 100.6
D) 101.4
E) -105.4

Question

Quizplus · Accepted Answer

Using exponential smoothing, we can find the forecast for next period as:
Forecast next period = alpha x actual demand this period + (1 - alpha) x forecast value for this period
= 0.6 x 103 + 0.4 x 99
= 101.4

Given an Actual Demand This Period of 103, a Forecast