The dean of a school of business is forecasting total student enrollment for this year's summer session classes based on the following historical data: $$\begin{array} { l l }
\text { Year } & \text { Enrollment } \
\hline \text { Four years ago } & 2000 \
\text { Three years ago } & 2200 \
\text { Two years ago } & 2800 \
\text { Last year } & 3000
\end{array}$$ What is this year's forecast using exponential smoothing with alpha = .4, if last year's smoothed forecast was 2,600?
A) 2,600
B) 2,760
C) 2,800
D) 3,840
E) 3,000

Question

The dean of a school of business is forecasting total student enrollment for this year's summer session classes based on the following historical data: $$\begin{array} { l l } 
\text { Year } & \text { Enrollment } \
\hline \text { Four years ago } & 2000 \
\text { Three years ago } & 2200 \
\text { Two years ago } & 2800 \
\text { Last year } & 3000
\end{array}$$ What is this year's forecast using exponential smoothing with alpha = .4, if last year's smoothed forecast was 2,600?
A) 2,600
B) 2,760
C) 2,800
D) 3,840
E) 3,000

Quizplus · Accepted Answer

Exponential smoothing forecast is calculated as: $ F_t = \alpha \times A_{t-1} + (1-\alpha) \times F_{t-1} $. Using the given data: $ F_t = 0.4 \times 3000 + 0.6 \times 2600 = 2760 $.

The Dean of a School of Business Is Forecasting Total