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 38 ​million, while the forecast was 43 million. A smoothing constant of 0.20 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 44 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 seasonality in its processing requirements. C. the

Answer 1

Answer:

Follows are the solution to this question:

Explanation:

In point A:

$\text{Accelerating layering Forecast July= }$$(\text{Actual demand of June} \times 0.20) + ( \text{Forecast demand of June} \times (1 - 0.20))$

$= ( 38 \times 0.2) + ( 43 \times 0.8)\\\\= 7.6+ 34.4\\\\=42$

In point B:

$\to Forecast \ \ August = (44 \times 0.2) + ( 43.2 \times 0.8)$

                                 $=8.8+34.56 \\\\=43.36$

In option C:

Its right choice is to track the seasonality of the processing requirements of the control centre.