Question

A dry cleaner uses exponential smoothing to forecast equipment usage at its main plant. August usage was forecasted to be 50 percent of capacity; actual usage was 52 percent of capacity. A smoothing constant of .10 is used. a. Prepare a forecast for September. (Round your final answer to 2 decimal places.)

Answer 1

Answer:

Explanation:

Forecast usage = 50 %

Actual Usage = 52%

smoothing constant = 0.10

⇒ 50 + 0.10 (52 - 50)

⇒ 50 + 0.10 (2)

⇒ 50 + 0.2 = 50.20