The forecast value for July was 210 and the actual value turned out to be 195.The researcher is using exponential smoothing and determines that the forecast value for August is 206.25.Then he is using α = ______.
A)0.35
B)0.32
C)0.30
D)0.25
E)0.22

Question

Quizplus · Accepted Answer

The exponential smoothing formula is: Forecast = α * Actual + (1 - α) * Previous Forecast. Plugging in the values: 206.25 = α * 195 + (1 - α) * 210. Solving for α gives α = 0.25.

The Forecast Value for July Was 210 and the Actual