Alpha Company sold 2,000 widgets yesterday.It had forecasted sales of 1,900 units.Using exponential smoothing with a smoothing constant of 0.6,what is the forecast for today's sales of widgets?
A)2,060
B)1,940
C)2,040
D)1,960

Question

Quizplus · Accepted Answer

Exponential smoothing forecast = Previous forecast + Smoothing constant * (Actual sales - Previous forecast). Here, 1,900 + 0.6 * (2,000 - 1,900) = 1,960.

Alpha Company Sold 2,000 Widgets Yesterday