Given the following information,calculate the forecast (accurate to 2 decimals)for period three using exponential smoothing and a = 0.3.
$$\begin{array} { c c c }
\text { Periad } & \text { Demand } & \text { Farecast } \
1 & 64 & 59 \
2 & 70 &
\end{array}$$
A) 36.90
B) 57.50
C) 61.50
D) 63.35

Question

Given the following information,calculate the forecast (accurate to 2 decimals)for period three using exponential smoothing and a = 0.3.
$$\begin{array} { c c c } 
\text { Periad } & \text { Demand } & \text { Farecast } \
1 & 64 & 59 \
2 & 70 &
\end{array}$$
A) 36.90
B) 57.50
C) 61.50
D) 63.35

Quizplus · Accepted Answer

We use the exponential smoothing formula with a = 0.3:

Forecast for period 2 = Previous forecast + a * (Actual demand for period 1 - Previous forecast)
                     = 59 + 0.3 * (64 - 59)
                     = 61.30

Then, we use the same formula to find the forecast for period 3:

Forecast for period 3 = Previous forecast + a * (Actual demand for period 2 - Previous forecast)
                     = 61.30 + 0.3 * (70 - 61.30)
                     = 63.35 (rounded to 2 decimals)

Therefore, the answer is D, 63.35.

Given the Following Information,calculate the Forecast (Accurate to 2 Decimals)for Periad Demand Farecast 16459270\begin{array} { c c c } \text { Periad } & \text { Demand } & \text { Farecast } \\1 & 64 & 59 \\2 & 70 &\end{array} Periad 12​ Demand 6470​ Farecast 59​

Given the Following Information,calculate the Forecast (Accurate to 2 Decimals)for $\begin{array} { c c c } \text { Periad } & \text { Demand } & \text { Farecast } \\1 & 64 & 59 \\2 & 70 &\end{array}$