Given an actual demand of 105, a previous forecast value of 99, and an alpha of .3, the exponential smoothing forecast for the next period would be
A) 94.6.
B) 97.4.
C) 100.8.
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 + Alpha * (Actual Demand - Previous Forecast). Plugging in the given values: 99 + .3 * (105 - 99) = 99 + .3 * 6 = 99 + 1.8 = 100.8.

Given an Actual Demand of 105, a Previous Forecast Value