What is the forecast for this year using exponential smoothing with alpha = .4,if the forecast for TWO years ago was 750?
A) 163
B) 180
C) 300
D) 420
E) 510

Question

Quizplus · Accepted Answer

Exponential smoothing uses the formula: Forecast = α * Actual + (1-α) * Previous Forecast. Without actual data for the past two years, we assume the forecast remains unchanged, so the forecast remains 750.

What Is the Forecast for This Year Using Exponential Smoothing