Given an actual demand of 103, a previous forecast value of 99, and an alpha of .4, the exponential smoothing forecast for the next period would be
A) 94.6
B) 97.4
C) 100.6
D) 101.6
E) 103.0

Question

Quizplus · Accepted Answer

The exponential smoothing forecast for the next period is calculated using the formula: Forecast = Previous Forecast + α(Actual - Previous Forecast), where α is the smoothing constant (alpha). Plugging in the given values: 99 + .4(103 - 99) = 99 + .4(4) = 99 + 1.6 = 100.6.

Given an Actual Demand of 103, a Previous Forecast Value