Given an actual demand of 105,a predicted value of 97,and an alpha of .4,the simple exponential smoothing forecast for the next period would be:
A)80.8
B)93.8
C)100.2
D)101.8
E)108.2

Question

Quizplus · Accepted Answer

The simple exponential smoothing forecast for the next period is calculated using the formula: Forecast = Old Forecast + α(Actual - Old Forecast), where α is the smoothing constant (alpha). Plugging in the values given: 97 + .4(105 - 97) = 97 + .4(8) = 97 + 3.2 = 100.2.

Given an Actual Demand of 105,a Predicted Value of 97,and