Table 14.10
TOMBOW is a small manufacturer of pencils and has had the following sales record for the most recent five months: Use an exponential smoothing model to forecast sales in months 2,3,4,and 5.Let the smoothing parameter equal 0.6;select F1 = 150 to get the forecast started.
-Use the information in Table 14.10.The forecast for month 2 is:

Question

Table 14.10
TOMBOW is a small manufacturer of pencils and has had the following sales record for the most recent five months:  Use an exponential smoothing model to forecast sales in months 2,3,4,and 5.Let the smoothing parameter equal 0.6;select F1 = 150 to get the forecast started.
-Use the information in Table 14.10.The forecast for month 2 is:

Quizplus · Accepted Answer

Using the exponential smoothing model with smoothing parameter 0.6 and F1 = 150, the forecast for month 2 is:
F2 = (0.6 * 150) + (0.4 * 120) = 141
Therefore, the forecast for month 2 is greater than 140 but fewer than or equal to 160 units.

Table 14.10 TOMBOW Is a Small Manufacturer of Pencils and Has Had