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Natasha2012 [34]
3 years ago
12

Professor Very Busy needs to allocate time next week to include time for office hours. He needs to forecast the number of studen

ts who will seek appointments. He has gathered the following data:
Week #Students
6 Weeks ago 83
5 Weeks ago 110
4 Weeks ago 95
3 Weeks ago 80
2 Weeks ago 65
Last week 50

What is this week's forecast using exponential smoothing with alpha = 0.2, if the forecast for two weeks ago was 90?

a. 49
b. 77
c. 52
d. 50
c. 65
Business
1 answer:
Serhud [2]3 years ago
6 0

Answer:

b. 77

Explanation:

The formula for forecasting is :

F_{t} = \alpha D_{t-1} + (1 - \alpha) F_{t-1}

where F_{t} is forecast for the period and D_{t} is the actual demand for the period.

Last week forecast is = \alpha * Demand 2 weeks ago + (1 - \alpha) * Forecast 2 weeks ago

0.2 * 65 + (1 - .02) * 90 = 13

Current week forecast is = \alpha * Demand Last weeks + (1 - \alpha) * Forecast Last weeks

0.2 * 50 + (1 - 0.2) * 83  = 77.

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