Ask Question
27 September, 00:09

A company wants to generate a forecast for unit demand for year 2017 using exponential smoothing. The actual demand in year 2016 was 90. The forecast demand in year 2016 was 120. Using this data and a smoothing constant alpha of 0.2, which of the following is the resulting year 2017 forecast value?

110

114

120

111

100

+2
Answers (1)
  1. 27 September, 02:30
    0
    114

    Explanation:

    For computing the forecast value for the resulting year, we have to apply the formula which is shown below:

    = Actual demand * alpha + forecast demand * (1 - alpha)

    = 90 * 0.2 + 120 * (1 - 0.2)

    = 18 + 96

    = 114

    To compute the forecast value we have to deduct the alpha from the forecast demand and multiply the alpha with the actual demand
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “A company wants to generate a forecast for unit demand for year 2017 using exponential smoothing. The actual demand in year 2016 was 90. ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers