A drive-in restaurant has experienced the following customer loads on the past 8 Friday nights. If their forecast for period 7 was 59 customers, then what is their forecast for period number 8 using a smoothing constant of 0.7? $$\begin{array} { | c | c | }
\hline \text { Friday } & \text { \# Customers } \
\hline 1 & 49 \
\hline 2 & 55 \
\hline 3 & 57 \
\hline 4 & 59 \
\hline 5 & 56 \
\hline 6 & 61 \
\hline 7 & 62 \
\hline 8 & 63 \
\hline
\end{array}$$
A)61.10
B)62.43
C)59.90
D)60.83

Question

A drive-in restaurant has experienced the following customer loads on the past 8 Friday nights. If their forecast for period 7 was 59 customers, then what is their forecast for period number 8 using a smoothing constant of 0.7? $$\begin{array} { | c | c | } 
\hline \text { Friday } & \text { \# Customers } \
\hline 1 & 49 \
\hline 2 & 55 \
\hline 3 & 57 \
\hline 4 & 59 \
\hline 5 & 56 \
\hline 6 & 61 \
\hline 7 & 62 \
\hline 8 & 63 \
\hline
\end{array}$$
A)61.10
B)62.43
C)59.90
D)60.83

Quizplus · Accepted Answer

The correct answer is A.The forecast for period 8 is calculated using the formula:Forecast for period 8 = (1 - smoothing constant) * Forecast for period 7 + smoothing constant * Actual demand for period 7Forecast for period 8 = (1 - 0.7) * 59 + 0.7 * 63Forecast for period 8 = 0.3 * 59 + 0.7 * 63Forecast for period 8 = 17.7 + 44.1Forecast for period 8 = 61.8Therefore, the forecast for period number 8 using a smoothing constant of 0.7 is 61.8.

A Drive-In Restaurant Has Experienced the Following Customer Loads on the Past