Using exponential smoothing, the demand forecast for time period 10 equals the demand forecast for time period 9 plus
A)$\alpha$ times (the demand forecast for time period 8)
B)$\alpha$ times (the error in the demand forecast for time period 9)
C)$\alpha$ times (the observed demand in time period 9)
D)$\alpha$ times (the demand forecast for time period 9)

Question

Quizplus · Accepted Answer

Exponential smoothing updates the forecast by adding a fraction ($\alpha$) of the error in the previous forecast to the previous forecast.

Using Exponential Smoothing, the Demand Forecast for Time Period 10 α\alphaα

Using Exponential Smoothing, the Demand Forecast for Time Period 10 $\alpha$