Given an actual demand of 61, forecast of 58, and an $\alpha$ of .3, what would the forecast for the next period be using simple exponential smoothing?
A)57.1
B)58.9
C)61.0
D)65.5

Question

Quizplus · Accepted Answer

The formula for simple exponential smoothing is F1 = αD1 + (1-α)F0, where F0 is the forecast for the previous period. 
Plugging in the values given, 
F1 = 0.3(61) + 0.7(58) = 58.9. 
Therefore, the forecast for the next period using simple exponential smoothing would be 58.9.

Given an Actual Demand of 61, Forecast of 58, and An \alpha