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ICE Princess25 [194]
3 years ago
10

A​ check-processing center uses exponential smoothing to forecast the number of incoming checks each month. The number of checks

received in June was 40 ​million, while the forecast was 42 million. A smoothing constant of 0.20 is used. ​a) Using exponential smoothing and given alpha​, the forecast for the month of July​ = ______ million checks received ​(round your response to one decimal​ place).
Business
1 answer:
BaLLatris [955]3 years ago
3 0

Answer:

Forecast for the month of July = 41,600,000 Checks

Explanation:

The question is determine the forecast for the month of July for the Check Processing Center

first, what is the forecast for June= 42 Million Checks also called Fjune

Actual checks received in June = 40 million checks also called Ajune

The smoothing constant is 0.2

Hence, the forecast for July known as the Fjuly

= a x Ajune + (1-a) x SFune

=  0.2 x 40,000,000 + (1-0.2) x 42,000,000

= 8,000,000 + 33,600,000

Forecast for the month of July = 41,600,000 Checks

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