Table 14.9

-Use the information in Table 14.9.Use the exponential smoothing method with = 0.5 and a February forecast of 500 to forecast the sales for May.
A)fewer than or equal to 530
B)greater than 530 but fewer than or equal to 540
C)greater than 540 but fewer than or equal to 550
D)greater than 550

Question

Table 14.9
 
-Use the information in Table 14.9.Use the exponential smoothing method with = 0.5 and a February forecast of 500 to forecast the sales for May.
A)fewer than or equal to 530 
B)greater than 530 but fewer than or equal to 540 
C)greater than 540 but fewer than or equal to 550 
D)greater than 550

Quizplus · Accepted Answer

Using exponential smoothing with alpha = 0.5, we have:

February Actual Sales = 530
March Forecast = (0.5*530) + (1-0.5)*500 = 515
April Forecast = (0.5*515) + (1-0.5)*500 = 507.5
May Forecast = (0.5*507.5) + (1-0.5)*500 = 503.75

Based on this forecast, the sales for May would be between 501 and 510, and the best choice is B, which includes the range of 531-540.

Table 14.9 -Use the Information in Table 14.9.Use the Exponential Smoothing Method