Consider the following actual and forecast demandlevels for Big Mac hamburgers at a local McDonald’s restaurant:DAY ACTUAL DEMAND FORECAST DEMANDMonday 88 88Tuesday 72 88Wednesday 68 84Thursday 48 80FridayThe forecast for Monday was derived by observing Monday’sdemand level and setting Monday’s forecast level equal to this demand level. Subsequent forecasts were derived by using expo-nential smoothing with a smoothing constant of 0.25. Using this exponential smoothing method, what is the forecast for Big Macdemand for Friday?
Consider the following actual and forecast demandlevels for Big Mac hamburgers at a local McDonald’s restaurant:DAY ACTUAL DEMAND FORECAST DEMANDMonday 88 88Tuesday 72 88Wednesday 68 84Thursday 48 80FridayThe forecast for Monday was derived by observing Monday’sdemand level and setting Monday’s forecast level equal to this demand level. Subsequent forecasts were derived by using expo-nential smoothing with a smoothing constant of 0.25. Using this exponential smoothing method, what is the forecast for Big Macdemand for Friday?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Consider the following actual and
levels for Big Mac hamburgers at a local McDonald’s restaurant:
DAY ACTUAL DEMAND FORECAST DEMAND
Monday 88 88
Tuesday 72 88
Wednesday 68 84
Thursday 48 80
Friday
The forecast for Monday was derived by observing Monday’s
demand level and setting Monday’s forecast level equal to this
demand level. Subsequent forecasts were derived by using expo-
nential smoothing with a smoothing constant of 0.25. Using this
exponential smoothing method, what is the forecast for Big Mac
demand for Friday?
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