Table 14.9

-Use the information in Table 14.9.Use an exponential smoothing model with a smoothing parameter of 0.30 and an April forecast of 525 to determine what the forecast sales would have been for June.
A)fewer than or equal to 535
B)greater than 535 but fewer than or equal to 545
C)greater than 545 but fewer than or equal to 555
D)greater than 555

Question

Table 14.9
 
-Use the information in Table 14.9.Use an exponential smoothing model with a smoothing parameter of 0.30 and an April forecast of 525 to determine what the forecast sales would have been for June.
A)fewer than or equal to 535 
B)greater than 535 but fewer than or equal to 545 
C)greater than 545 but fewer than or equal to 555 
D)greater than 555

Quizplus · Accepted Answer

Using exponential smoothing with a smoothing parameter of 0.30 and an April forecast of 525, we can calculate the forecast sales for May:
(0.30)*(525) + (1 - 0.30)*(550) = 537.5 (rounded to nearest whole number)

Next, we can use the forecast for May (537) as the April forecast for June and calculate the forecast sales for June:
(0.30)*(537) + (1 - 0.30)*(525) = 531.6 (rounded to nearest whole number)

Therefore, the forecast sales for June would be greater than 545 but fewer than or equal to 555, making choice C the best answer.

Table 14.9 -Use the Information in Table 14.9.Use an Exponential Smoothing Model