Given an actual demand of 57,a previous forecast of 62,and an alpha of .3,what would the forecast for the next period be using simple exponential smoothing?
A)36.9
B)57.5
C)60.5
D)62.5
E)65.5

Question

Quizplus · Accepted Answer

The forecast for the next period using simple exponential smoothing is calculated using the formula: Forecast_new = Forecast_old + α(Actual_old - Forecast_old), where α is the smoothing constant (alpha). Plugging in the values: 62 + 0.3(57 - 62) = 62 + 0.3(-5) = 62 - 1.5 = 60.5.

Given an Actual Demand of 57,a Previous Forecast of 62,and