Exhibit 11.3
The following questions use the data below.
Honest Al's Used Cars wants to predict how many cars are sold each month. He has collected data for 12 months. He needs your help in analyzing this data using exponential smoothing.
-Refer to Exhibit 11.3. What is the exponential smoothing forecast for month 2?
A) 69.75 ≤ forecast

Question

Exhibit 11.3
The following questions use the data below.
Honest Al's Used Cars wants to predict how many cars are sold each month. He has collected data for 12 months. He needs your help in analyzing this data using exponential smoothing. 
-Refer to Exhibit 11.3. What is the exponential smoothing forecast for month 2?
A) 69.75 ≤ forecast < 70.25 
B) 73.00 ≤ forecast < 73.50 
C) 74.75 ≤ forecast < 75.25 
D) 79.75 ≤ forecast < 81.25

Quizplus · Accepted Answer

The exponential smoothing forecast for month 2 can be calculated using the formula: Forecast for month 2 = (α * Actual demand for month 1) + ((1 - α) * Forecast for month 1), where α is the smoothing constant. Without the specific values for α, actual demand for month 1, and the forecast for month 1, we cannot calculate the exact number. However, given the options, the correct range must be inferred based on provided data or understanding of exponential smoothing, which typically adjusts forecasts based on recent actual demand. The choice provided suggests a hypothetical correct range for the forecast.

Exhibit 11.3 The Following Questions Use the Data Below