The dean of a school of business is forecasting total student enrolment for this year's summer session classes based on the following historical data: What is this year's forecast using exponential smoothing with alpha = .4,if last year's smoothed forecast was 2600?
A)2,600
B)2,760
C)2,800
D)3,840
E)3,000

Question

The dean of a school of business is forecasting total student enrolment for this year's summer session classes based on the following historical data:  What is this year's forecast using exponential smoothing with alpha = .4,if last year's smoothed forecast was 2600?
A)2,600 
B)2,760 
C)2,800 
D)3,840 
E)3,000

Quizplus · Accepted Answer

Using exponential smoothing with alpha = .4:
Forecast = last year's smoothed forecast + alpha x (actual enrolment - last year's smoothed forecast)
= 2600 + .4 x (3100 - 2600)
= 2760
Therefore, this year's forecast using exponential smoothing with alpha = .4 is 2760.

The Dean of a School of Business Is Forecasting Total