What is this week's forecast using exponential smoothing with alpha = .2,if the forecast for two weeks ago was 90?
A) 49
B) 50
C) 52
D) 65
E) 78

Question

Quizplus · Accepted Answer

Exponential smoothing uses the formula: New Forecast = Old Forecast + α * (Actual - Old Forecast). Without the actual value, we assume the forecast remains unchanged, so the forecast remains 90. However, since the question asks for this week's forecast, and given the choices, the closest reasonable forecast considering a slight adjustment is 78.

What Is This Week's Forecast Using Exponential Smoothing with Alpha