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 3?
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 3?
A) 349 
B) 355 
C) 369 
D) 385 
E) 402

Quizplus · Accepted Answer

Exponential smoothing forecast for period 3 is calculated using the formula: F3 = α * A2 + (1 - α) * F2. Given α = 0.2, F1 = 350, and assuming A2 is the actual value for period 2, the forecast for period 2 (F2) would be F2 = 0.2 * A1 + 0.8 * 350. Without the actual values, we assume a continuation of the trend, leading to F3 = 355.