Table 8.6

-Use the information in Table 8.6. Use an exponential smoothing model with a smoothing parameter of 0.30 and an April forecast of 525 to determine what the forecast sales would have been for June.
A) fewer than or equal to 535
B) greater than 535 but fewer than or equal to 545
C) greater than 545 but fewer than or equal to 555
D) greater than 555

Question

Table 8.6
 
-Use the information in Table 8.6. Use an exponential smoothing model with a smoothing parameter of 0.30 and an April forecast of 525 to determine what the forecast sales would have been for June.
A) fewer than or equal to 535 
B) greater than 535 but fewer than or equal to 545 
C) greater than 545 but fewer than or equal to 555 
D) greater than 555

Quizplus · Accepted Answer

Using exponential smoothing with a smoothing parameter of 0.30, we can use the following formula:
Forecast for June = (1 - 0.30) x Actual April Sales + 0.30 x Forecast for April
= (0.70 x 530) + (0.30 x 525)
= 371 + 157.5
= 528.5
Therefore, the forecast sales for June would have been greater than 545 but fewer than or equal to 555 (Choice C).

Table 8.6 -Use the Information in Table 8.6. Use an Exponential Smoothing