Answer:
The smoothing constant alpha is 0.20 (Option a)
Step-by-step explanation:
To solve this problem, first we write the succession of the simple exponential smoothing:
Where s(t) is the forecast for period t, s(t-1) is the forecast for period (t-1), xt is the real demand for period t, and alpha is the smoothing constant.
All but the alpha constant are known
s(t)=109.2
s(t-2)=110
xt=110-4=106
Then, we can calculate alpha as: