The forecast level of sales for the month of October was 140 units. Actual sales in October turned out to be 130 units. Use an exponential smoothing coefficient of 0.60 to forecast sales for November.
A) 146
B) 138
C) 134
D) None of the above is correct.

Question

Quizplus · Accepted Answer

The exponential smoothing formula is: Forecast for November = (Smoothing Coefficient * Actual Sales in October) + ((1 - Smoothing Coefficient) * Forecast for October). So, Forecast for November = (0.60 * 130) + (0.40 * 140) = 78 + 56 = 134.

The Forecast Level of Sales for the Month of October