In an Excel spreadsheet set up for an exponential smoothing forecast model,if alpha is in cell B4,the demand for period 3 is in cell B11,and the forecast for period 3 is in cell C11 the Excel formula for the forecast for period 4 in cell C12 is
A)=B4*B11*1-B4)*C11
B)=B4*B11+1-B4)*C11
C)=B11*B4+1-B11)*C11
D)=B4*C11+1-C11)*B11

Question

Quizplus · Accepted Answer

The formula for exponential smoothing forecast model is  F(t+1) = alpha * D(t) + (1-alpha) * F(t). Using this formula and given the values, we get C12 = B4*B11 + (1-B4)*C11. This is the same as option B.

In an Excel Spreadsheet Set Up for an Exponential Smoothing