Given an actual demand of 59, a previous forecast of 64, and an alpha of .3, what would the forecast for the next period be using simple exponential smoothing?
A) 36.9
B) 57.5
C) 60.5
D) 62.5

Question

Quizplus · Accepted Answer

Using simple exponential smoothing: 
Forecast for next period = previous forecast + alpha * (actual demand - previous forecast) 
= 64 + 0.3 * (59 - 64) 
= 62.5

Given an Actual Demand of 59, a Previous Forecast of 64