Given an actual latest demand of 105,a previous forecast of 97,and $\alpha$ = 0 4,what would be the forecast for the next period using the exponential smoothing method?
A)80 8
B)93 8
C)100 2
D)101 8
E)108 2

Question

Given an actual latest demand of 105,a previous forecast of 97,and $\alpha$ = 0 4,what would be the forecast for the next period using the exponential smoothing method?
A)80 8 
B)93 8 
C)100 2 
D)101 8 
E)108 2

Quizplus · Accepted Answer

The exponential smoothing forecast is calculated as: Forecast = Previous Forecast + α * (Actual Demand - Previous Forecast). Substituting the given values: 97 + 0.4 * (105 - 97) = 100.2.

Given an Actual Latest Demand of 105,a Previous Forecast of 97,and