Using exponential smoothing,the demand forecast for time period 10 equals the demand forecast for time period 9 plus
A)α times the demand forecast for time period 8.
B)α times the error in the demand forecast for time period 9.
C)α times the observed demand in time period 9.
D)α times the demand forecast for time period 9.

Question

Quizplus · Accepted Answer

Exponential smoothing updates the forecast for the next period by adding a fraction (α) of the error in the most recent period's forecast to that forecast. The error is the difference between the actual demand and the forecasted demand for that period.

Using Exponential Smoothing,the Demand Forecast for Time Period 10 Equals