Using Data Set E1,what would be the forecast for period 6 using the exponential smoothing method? Assume the forecast for period 5 is 14000.Use a smoothing constant of α = 0.4 (Choose the closest answer. )
A)14575
B)26100
C)16600
D)19700

Question

Quizplus · Accepted Answer

Using the exponential smoothing method, the forecast for period 6 can be calculated as follows: 
Forecast for period 6 = α(actual value for period 5) + (1-α)(forecast for period 5)
= 0.4(14000) + 0.6(14000) = 16600
Therefore, the forecast for period 6 is 16600, which is closest to option C.

Using Data Set E1,what Would Be the Forecast for Period