A check-processing center uses exponential smoothing to forecast the number of i

Question

A check-processing center uses exponential smoothing to forecast the number of incoming checks each month. The number of checks received in June was 4040 million, while the forecast was 4242 million. A smoothing constant of 0.150.15 is used. a) Using exponential smoothing and given alpha, the forecast for the month of July = nothing million checks received (round your response to one decimal place). b) If the check-processing center received 4646 million checks in the month of July, then using exponential smoothing and given alpha, the forecast for the month of August = nothing million checks received (round your response to one decimal place). c) Exponential smoothing may not be an appropriate method to use for the check-processing center because: A. the check-processing center should observe an increasing trend in its processing requirements. B. the check-processing center should observe a cyclical trend in its processing requirements. C. the check-processing center's forecast is very hard to make as its processing requirements should have a very high variability. D. the check-processing center should observe seasonality in its processing requirements. A check-processing center uses exponential smoothing to forecast the number of incoming checks each month. The number of checks received in June was 4040 million, while the forecast was 4242 million. A smoothing constant of 0.150.15 is used. 4040 4242 0.150.15 a) Using exponential smoothing and given alpha, the forecast for the month of July = nothing million checks received (round your response to one decimal place). alpha, nothing b) If the check-processing center received 4646 million checks in the month of July, then using exponential smoothing and given alpha, the forecast for the month of August = nothing million checks received (round your response to one decimal place). 4646 alpha, nothing c) Exponential smoothing may not be an appropriate method to use for the check-processing center because: A. the check-processing center should observe an increasing trend in its processing requirements. B. the check-processing center should observe a cyclical trend in its processing requirements. C. the check-processing center's forecast is very hard to make as its processing requirements should have a very high variability. D. the check-processing center should observe seasonality in its processing requirements. A. the check-processing center should observe an increasing trend in its processing requirements. B. the check-processing center should observe a cyclical trend in its processing requirements. C. the check-processing center's forecast is very hard to make as its processing requirements should have a very high variability. D. the check-processing center should observe seasonality in its processing requirements. A. the check-processing center should observe an increasing trend in its processing requirements. A. the check-processing center should observe an increasing trend in its processing requirements. the check-processing center should observe an increasing trend in its processing requirements. B. the check-processing center should observe a cyclical trend in its processing requirements. B. the check-processing center should observe a cyclical trend in its processing requirements. the check-processing center should observe a cyclical trend in its processing requirements. C. the check-processing center's forecast is very hard to make as its processing requirements should have a very high variability. C. the check-processing center's forecast is very hard to make as its processing requirements should have a very high variability. the check-processing center's forecast is very hard to make as its processing requirements should have a very high variability. D. the check-processing center should observe seasonality in its processing requirements. D. the check-processing center should observe seasonality in its processing requirements. the check-processing center should observe seasonality in its processing requirements.

Explanation / Answer

here as we know that exponential smoothing forecast =alpha*last month actual+(1-alpha)*last month forecast

             a) forecast for july =40*0.15+(1-0.15)*42=41.7

b) forecast for August =46*0.15+(1-0.15)*41.7=42.3

c)

check-processing center's forecast is very hard to make as its processing requirements should have a very high variability.

please revert for any clarification required.

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