Table 6 -1. Actual Sales Data

-Refer to Table 6 -1. Using the exponential smoothing model with an a of 0.2 and a smoothed forecast for period 1 of 350, what is the forecast for period 2?
A) 349
B) 355
C) 369
D) 385
E) 402

Question

Table 6 -1. Actual Sales Data
 
-Refer to Table 6 -1. Using the exponential smoothing model with an a of 0.2 and a smoothed forecast for period 1 of 350, what is the forecast for period 2?
A) 349 
B) 355 
C) 369 
D) 385 
E) 402

Quizplus · Accepted Answer

The forecast for period 2 using exponential smoothing is calculated with the formula: Forecast for Period 2 = (α × Actual Demand for Period 1) + ((1 - α) × Forecast for Period 1). Without the actual demand for period 1, we cannot calculate the exact number, but since only the forecast value is provided and no change is indicated, the forecast remains the same as the initial forecast for period 1, which is 350. However, given the choices and the context of the question hinting at a calculation error, the closest answer reflecting a slight adjustment based on the provided alpha (α = 0.2) would be 349, assuming a small decrease was intended in the scenario described.