Table 10.1
$$\begin{array} { | l | c | }
\hline \ { \text { Month } } & \text { Demand } \
\hline \text { January } & 55 \
\text { February } & 52 \
\text { March } & 57 \
\text { April } & 64 \
\text { May } & 58 \
\text { June } & 54 \
\text { July } & 62 \
\text { August } & 69 \
\hline
\end{array}$$
-Use the information in Table 10.1.What would be the forecast for September if the exponential smoothing technique were used? (? = 0.30 and the forecast for March was 55)
A) less than or equal to 65
B) greater than 65 but less than or equal to 67
C) greater than 67 but less than or equal to 69
D) greater than 69

Question

Table 10.1
 $$\begin{array} { | l | c | } 
\hline \ { \text { Month } } & \text { Demand } \
\hline \text { January } & 55 \
\text { February } & 52 \
\text { March } & 57 \
\text { April } & 64 \
\text { May } & 58 \
\text { June } & 54 \
\text { July } & 62 \
\text { August } & 69 \
\hline
\end{array}$$
-Use the information in Table 10.1.What would be the forecast for September if the exponential smoothing technique were used? (? = 0.30 and the forecast for March was 55)
A) less than or equal to 65
B) greater than 65 but less than or equal to 67
C) greater than 67 but less than or equal to 69
D) greater than 69

Quizplus · Accepted Answer

The exponential smoothing formula is: $ F_{t+1} = \alpha \times D_t + (1 - \alpha) \times F_t $. Using this formula iteratively from March to August with $\alpha = 0.30$, the forecast for September is calculated to be less than or equal to 65.

Table 101 -Use the Information in Table 10