Question

Given an actual demand this period of 61, a forecast value for this period of 58, and an alpha of 0.3, what is the experimential smoothing forecast for the next period?

Answer 1

Answer:

Experimental smoothing forecast for the next period will be 58.9

Step-by-step explanation:

We have given actual demand is $A_{t-1}=61$

Initial forecast $f_{t-1}=61$ and $\alpha =0.3$

We have to find the experimental smoothing forecast $f_t$

Experimental forecast is given by

$f_t=(1-\alpha )f_{t-1}+\alpha A_{t-1}=(1-0.3)\times 58+0.3\times 61=58.9$

So experimental smoothing forecast for the next period will be 58.9