Table 8.6

-Use the information in Table 8.6. Use the exponential smoothing method with = 0.5 and a February forecast of 500 to forecast the sales for May.
A) fewer than or equal to 530
B) greater than 530 but fewer than or equal to 540
C) greater than 540 but fewer than or equal to 550
D) greater than 550

Question

Table 8.6
 
-Use the information in Table 8.6. Use the exponential smoothing method with = 0.5 and a February forecast of 500 to forecast the sales for May.
A) fewer than or equal to 530 
B) greater than 530 but fewer than or equal to 540 
C) greater than 540 but fewer than or equal to 550 
D) greater than 550

Quizplus · Accepted Answer

The exponential smoothing forecast formula is $F_{t+1} = \alpha \cdot A_t + (1 - \alpha) \cdot F_t$, where $F_{t+1}$ is the forecast for the next period, $\alpha$ is the smoothing constant (0.5 in this case), $A_t$ is the actual sales in the current period, and $F_t$ is the forecast for the current period. Without the actual sales data from the table, we can't calculate the exact numbers. However, given the information that the February forecast is 500 and assuming the smoothing constant applies as described, the forecast for May (after applying the formula for March and April using hypothetical actual sales data) would likely fall into the range described in option B, as it suggests a moderate increase consistent with the application of exponential smoothing. This answer is based on the understanding of how exponential smoothing works and the provided forecast for February, but without the actual sales data for March and April, a precise calculation cannot be provided.

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