Assume that the forecast for the last period is FIT_t = 200 units, and recent experience suggests a likely sales increase of 10 units each period. Actual sales for the last period reached 230 units. Assume a smoothing coefficient of a = 0.20 and a trend smoothing coefficient of β = 0.10. What is the ADJUSTED forecast for the next period? A)210.0 B)210.6 C)216.6 D)216.0

Question

Quizplus · Accepted Answer

T_t₊₁ = T_t + β(F_t₊₁ - FIT_t) = 10 + 0.10 (206 - 200) = 10 + 0.6 = 10.6.FIT_t₊₁ = F_t₊₁ + T_t₊₁ = 206 + 10.6 = 216.6.

Assume That the Forecast for the Last Period Is FITt

Assume That the Forecast for the Last Period Is FIT_t