Given a prior forecast demand value of 1,100, a related actual demand value of 1,000, and a smoothing constant alpha of 0.3, what is the exponential smoothing forecast value?
A) 1,000
B) 1,030
C) 1,070
D) 1,130
E) 970

Question

Quizplus · Accepted Answer

The exponential smoothing forecast value is calculated using the formula: New Forecast = Old Forecast + α(Actual - Old Forecast). Plugging in the given values: 1,100 + 0.3(1,000 - 1,100) = 1,100 - 30 = 1,070.

Given a Prior Forecast Demand Value of 1,100, a Related