he Yummy Ice Cream Company projects the demand for ice cream by using first-order exponential smoothing. Last week the forecast was 100,000 gallons of ice cream, and 90,000 gallons was actually sold.   Using alpha=.1, prepare a forecast for next week.     Calculate the forecast using Alpha=.2 and Alpha=.3 for this problem. Which values of Alpha gave the best forecast, assuming actual demand for next week ends up being 95,000 gallons?

Practical Management Science
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Chapter2: Introduction To Spreadsheet Modeling
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The Yummy Ice Cream Company projects the demand for ice cream by using first-order exponential smoothing. Last week the forecast was 100,000 gallons of ice cream, and 90,000 gallons was actually sold.

 

  1. Using alpha=.1, prepare a forecast for next week.

 

 

  1. Calculate the forecast using Alpha=.2 and Alpha=.3 for this problem. Which values of Alpha gave the best forecast, assuming actual demand for next week ends up being 95,000 gallons?
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