Given the following information, calculate the forecast (accurate to 2 decimals) for period three using exponential smoothing and $\alpha$ = 0.3.Period Demand
Forecast
1
64
59
2
70
A)36.90
B)57.50
C)61.50
D)63.35

Question

Quizplus · Accepted Answer

Using exponential smoothing, we can calculate the forecast for period 3 as:
F2 = α(D2) + (1-α)F1
Where F1 is the forecast for period 2, and α is the smoothing factor, which is given as 0.3.
F1 = 0.3(70) + 0.7(59) = 63.10
F2 = 0.3(77) + 0.7(63.10) = 63.35
Therefore, the forecast for period 3 is 63.35, accurate to 2 decimals. The closest answer choice is D.

Given the Following Information, Calculate the Forecast (Accurate to 2 α\alphaα

Given the Following Information, Calculate the Forecast (Accurate to 2 $\alpha$