If the forecast for period 5 is equal to 275, use exponential smoothing to compute a forecast for period 7 if α = .40.
A) 273
B) 277
C) 267.8
D) 286.2

Question

Quizplus · Accepted Answer

Using exponential smoothing with alpha = 0.4, we can calculate the forecast for period 7 as follows:

Forecast for period 6 = (1 - 0.4) * 275 + 0.4 * 275 = 275
Forecast for period 7 = (1 - 0.4) * 275 + 0.4 * 275 = 286.2

Therefore, the answer is D (286.2).

If the Forecast for Period 5 Is Equal to 275