Assume the intial forecast was 30000 so that the actual forecast are the same 21

Question

Assume the intial forecast was 30000 so that the actual forecast are the same
21. Average starting salaries for students using a placement service at a university have been steadily increasing. A study of the last four graduating classes indicates the folowing ave salaries: $30,000, $32,000, $34,500, and $36,000 (last graduating class). What is the predicted starting salary for the next graduating dlass using a simple exponental smoothing mod 0.25? Assume that the initial forecast was $30,000 (so that the forecast and the actual were the same) (Points:2) O $30.775 O $31,500 $32,625 $34,375

Explanation / Answer

The simple exponential model is:

Last salary*alpha+(1-alpha)*Forecast

Then, the predicted salary for the next graduating salary is calculated:

36000*0.25+(1-0.25)*30000=31500

The predicted salary for the next graduating salary is: $31,500

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