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A concert promoter is forecasting this year's attendance for one of his concerts based on the following historical data:    Year Attendance Four Years ago 10,000 Three Years ago 12,000 Two Years ago 18,000 Last Year 20,000    What is this year's forecast using exponential smoothing with alpha = 0.2, if last year's smoothed forecast was 15,000

A concert promoter is forecasting this year's attendance for one of his concerts based on the following historical data:    Year Attendance Four Years ago 10,000 Three Years ago 12,000 Two Years ago 18,000 Last Year 20,000    What is this year's forecast using exponential smoothing with alpha = 0.2, if last year's smoothed forecast was 15,000

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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A concert promoter is forecasting this year's attendance for one of his concerts based on the following historical data:
  

Year Attendance
Four Years ago 10,000
Three Years ago 12,000
Two Years ago 18,000
Last Year 20,000

  
What is this year's forecast using exponential smoothing with alpha = 0.2, if last year's smoothed forecast was 15,000?

Multiple Choice ο ο ο ο ο 17,500 16,000 19,000 15.000 20,000
Transcribed Image Text:Multiple Choice ο ο ο ο ο 17,500 16,000 19,000 15.000 20,000
Expert Solution
Step 1

Exponential smoothing method is used for linear trend and seasoanl pattern. The following is the method of exponential smoothing

Exponential smoothing(Ft) = alpha(a) ×Actual demand(At) +(1-alpha) *Forecast ing for previous period (Ft-1)

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