Given an actual demand of 100, a previous forecast value of 90, and an alpha of 0.2, the exponential smoothing forecast for the next period would be
A) 92.6
B) 92.0
C) 118.0
D) 98.0

Question

Quizplus · Accepted Answer

The exponential smoothing forecast is calculated using the formula: Forecast = Previous Forecast + α * (Actual Demand - Previous Forecast). Substituting the given values: Forecast = 90 + 0.2 * (100 - 90) = 90 + 2 = 92.0.

Given an Actual Demand of 100, a Previous Forecast Value