Consider the following actual (t At ) and forecast ( t Ft ) demand levels for a
ID: 3180156 • Letter: C
Question
Consider the following actual (tAt) and forecast ( tFt) demand levels for a commercial multiline telephone at Office Max:
Time Period
t
Actual Demand
Upper A Subscript tAt
Forecast Demand
Upper F Subscript tFt
1
50.0
50.005
2
45.0
50.00
3
56.0
49.00
4
47.0
50.40
5
?
The first forecast, F1, was derived by observing A1 and setting F1 equal to A1.
Subsequent forecasts were derived by exponential smoothing.
The smoothing constant() used to derive the subsequent forecasts = (round your response to two decimal places).
(Hint: To determine , use either the relationship for period 3 or 4.)
Time Period
t
Actual Demand
Upper A Subscript tAt
Forecast Demand
Upper F Subscript tFt
1
50.0
50.005
2
45.0
50.00
3
56.0
49.00
4
47.0
50.40
5
?
Explanation / Answer
here as we know that for exponential forecasting
forecast =previous month actual* +(1-)*previous month forecast
hence 49 =45+(1-)*50
=0.2
hence forecast for 5th month =47*0.2+50.4*0.8=49.72
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.