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.
A) less than or equal to 2
B) greater than 2 but less than or equal to 3
C) greater than 3 but less than or equal to 4
D) greater than 4

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.
A) less than or equal to 2 
B) greater than 2 but less than or equal to 3 
C) greater than 3 but less than or equal to 4 
D) greater than 4

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