Exhibit 18.2.The following table includes the information about a monthly time series. Refer to Exhibit 18.2.What is the forecast for May using the exponential smoothing method with α = 0.5?
A)21
B)21.5
C)19
D)19.5

Question

Exhibit 18.2.The following table includes the information about a monthly time series.  Refer to Exhibit 18.2.What is the forecast for May using the exponential smoothing method with α = 0.5?
A)21 
B)21.5 
C)19 
D)19.5

Quizplus · Accepted Answer

Using exponential smoothing with α=0.5, we can calculate the forecast for May as follows:
Forecast for May = (0.5 × Actual Sales in April) + (0.5 × Forecasted Sales in April)
= (0.5 × 20) + (0.5 × 23) = 21.5
Therefore, the forecast for May using the exponential smoothing method with α = 0.5 is 21.5.