The forecast value for August was 22 and the actual value turned out to be 19.Using exponential smoothing with $\alpha$= 0.30, the forecast value for September would be ______.
A)21.1
B)19.9
C)18.1
D)22.9
E)21.0

Question

Quizplus · Accepted Answer

The forecast for September using exponential smoothing is calculated with the formula: $F_{t+1} = \alpha A_t + (1 - \alpha)F_t$, where $F_{t+1}$ is the forecast for the next period, $\alpha$ is the smoothing constant (0.30 in this case), $A_t$ is the actual value in the current period (19), and $F_t$ is the forecast for the current period (22). Plugging in the values: $F_{September} = 0.30 \times 19 + 0.70 \times 22 = 5.7 + 15.4 = 21.1$.

The Forecast Value for August Was 22 and the Actual α\alphaα

The Forecast Value for August Was 22 and the Actual $\alpha$