Table 11.6.

-Use the information in Table 11.6. Use an exponential smoothing model with a smoothing parameter of 0.30 to forecast sales for year 5.

Question

Table 11.6.

-Use the information in Table 11.6. Use an exponential smoothing model with a smoothing parameter of 0.30 to forecast sales for year 5.

Quizplus · Accepted Answer

Exponential smoothing forecasts are calculated using the formula: Forecast = α * Actual + (1-α) * Previous Forecast. Given the smoothing parameter (α) of 0.30, you would apply this formula iteratively over the years provided in Table 11.6 to forecast year 5 sales. The result will fall in the range greater than 3 but less than or equal to 4.

Table 11.6. -Use the Information in Table 11.6. Use an Exponential Smoothing