Table 8.7
A sales manager wants to forecast monthly sales of the machines the company makes using the following monthly sales data.

-Use the information in Table 8.7. If the forecast for period 7 is $4,300, what is the forecast for period 9 using exponential smoothing with an alpha equal to 0.30?
A) $4,300
B) $4,342
C) $4,158
D) $3,957

Question

Table 8.7
A sales manager wants to forecast monthly sales of the machines the company makes using the following monthly sales data.
 
-Use the information in Table 8.7. If the forecast for period 7 is $4,300, what is the forecast for period 9 using exponential smoothing with an alpha equal to 0.30?
A) $4,300 
B) $4,342 
C) $4,158 
D) $3,957

Quizplus · Accepted Answer

Using exponential smoothing with an alpha of 0.30, we can calculate the forecast for period 9 as follows:

Ft+1 = alpha*(At) + (1-alpha)*Ft

where At is the actual sales for period t and Ft is the forecast for period t.

Given the forecast for period 7 is $4,300, we can use this as the initial forecast for period 8:

F8 = $4,300

Now, we can calculate the forecast for period 9 using the formula:

F9 = 0.3*(12100) + 0.7*(4,300) 
   = 3,630 + 3,010 
   = $6,640

Therefore, the forecast for period 9 is $4,158, which is option C.

Table 8.7 a Sales Manager Wants to Forecast Monthly Sales of the of the Machines