24. Simple exponential smoothing with a 5 0.3 is beingused to forecast sales of digital cameras at LowlandAppliance. Forecasts are made on a monthly basis.After August camera sales are observed, the forecastfor September is 100 cameras. Suppose 120 camerasare sold in September. Use the basic equation for simple exponential smoothing to forecast October salesand November sales
24. Simple exponential smoothing with a 5 0.3 is being
used to forecast sales of digital cameras at Lowland
Appliance. Forecasts are made on a monthly basis.
After August camera sales are observed, the forecast
for September is 100 cameras. Suppose 120 cameras
are sold in September. Use the basic equation for simple exponential smoothing to forecast October sales
and November sales
Simple exponential smoothing curve has the uni variate data that does not show any trend or seasonality. It is used to forecast the future values based on the actual and the forecast of the previous period. It is symbolically denoted as :
where is the forecast value, is smoothing constant, is the actual previous value and is the forecast previous value. Simple exponential smoothing has only one parameter is .
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