What is the exponentially smoothed forecast for week 2? (Use F₁ = 25 and alpha = 0.2) A)21.0 B)24.0 C)32.0 D)53.0

Question

Quizplus · Accepted Answer

Exponentially smoothed forecast formula: FS(t) = alpha*Demand(t-1) + (1-alpha)*FS(t-1) Given alpha = 0.2 and F₁ = 25 For week 2, demand (Demand(t-1)) is not given. Therefore, we can use the initial value F₁ = 25 as starting point. FS(2) = 0.2*25 + 0.8*25 = 24.0 Therefore, the exponentially smoothed forecast for week 2 is 24.0 (option B).

What Is the Exponentially Smoothed Forecast for Week 2? (Use