iven an actual demand this period of 100, a forecast value for this period of 130, a 6, what is the exponential smoothing forecast for next period? (Round answer to t hole number.) OA. 100 O B. 130 C. 82 OD. 112 O E. 118
iven an actual demand this period of 100, a forecast value for this period of 130, a 6, what is the exponential smoothing forecast for next period? (Round answer to t hole number.) OA. 100 O B. 130 C. 82 OD. 112 O E. 118
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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![**Problem Statement:**
Given an actual demand this period of 100, a forecast value for this period of 130, and an alpha of 0.6, what is the exponential smoothing forecast for the next period? (Round answer to the nearest whole number.)
**Options:**
- A. 100
- B. 130
- C. 82
- D. 112
- E. 118
**Explanation:**
Exponential smoothing formula:
\[ \text{Forecast}_{\text{next}} = \alpha \times \text{Actual} + (1 - \alpha) \times \text{Forecast}_{\text{current}} \]
Substitute the given values:
\[ \text{Forecast}_{\text{next}} = 0.6 \times 100 + (1 - 0.6) \times 130 \]
Calculate:
\[ \text{Forecast}_{\text{next}} = 60 + 52 = 112 \]
Thus, the correct answer is **D. 112**.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2cc0dc01-40dd-4b97-a72f-9924499bada4%2F7a73b375-3065-4f1a-bfb6-b2bb53e9142b%2Fdwol0sk_processed.png&w=3840&q=75)
Transcribed Image Text:**Problem Statement:**
Given an actual demand this period of 100, a forecast value for this period of 130, and an alpha of 0.6, what is the exponential smoothing forecast for the next period? (Round answer to the nearest whole number.)
**Options:**
- A. 100
- B. 130
- C. 82
- D. 112
- E. 118
**Explanation:**
Exponential smoothing formula:
\[ \text{Forecast}_{\text{next}} = \alpha \times \text{Actual} + (1 - \alpha) \times \text{Forecast}_{\text{current}} \]
Substitute the given values:
\[ \text{Forecast}_{\text{next}} = 0.6 \times 100 + (1 - 0.6) \times 130 \]
Calculate:
\[ \text{Forecast}_{\text{next}} = 60 + 52 = 112 \]
Thus, the correct answer is **D. 112**.
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