The owners of Hal's Cookie Company have collected sales data for the past 8 months.These data are shown as follows:
Using a starting forecast in period 1 of 100,the forecast bias over periods 2-8 is negative when a single exponential smoothing model is used with a smoothing constant of 0.20

Question

The owners of Hal's Cookie Company have collected sales data for the past 8 months.These data are shown as follows:
  Using a starting forecast in period 1 of 100,the forecast bias over periods 2-8 is negative when a single exponential smoothing model is used with a smoothing constant of 0.20

Quizplus · Accepted Answer

Since the forecast bias is negative, it means that the actual sales are lower than the forecasted sales. However, the question states that a single exponential smoothing model with a smoothing constant of 0.20 is used, but it doesn't provide any information regarding the accuracy of the forecast. Therefore, we can't determine whether the statement is true or false.

The Owners of Hal's Cookie Company Have Collected Sales Data