Questions 10-66 through 10-69 refer to the following:
An operation analyst is forecasting this year's demand for one of his company's products based on the following historical data:
Year # sold
4 years ago 10,000
3 years ago 12,000
2 years ago 18,000
Last year 20,000
-What is the forecast for this year using exponential smoothing with $\alpha$ = 0 2,if the forecast for last year was 15,000?
A)20,000
B)19,000
C)17,500
D)16,000
E)15,000

Question

Questions 10-66 through 10-69 refer to the following:
An operation analyst is forecasting this year's demand for one of his company's products based on the following historical data:
Year # sold
4 years ago 10,000
3 years ago 12,000
2 years ago 18,000
Last year 20,000
-What is the forecast for this year using exponential smoothing with $\alpha$ = 0 2,if the forecast for last year was 15,000?
A)20,000 
B)19,000 
C)17,500 
D)16,000 
E)15,000

Quizplus · Accepted Answer

Exponential smoothing forecast = Previous forecast + α(Actual demand - Previous forecast). For last year: 15,000 + 0.2(20,000 - 15,000) = 16,000.

Questions 10-66 Through 10-69 Refer to the Following: an Operation α\alphaα

Questions 10-66 Through 10-69 Refer to the Following:
an Operation $\alpha$