Answered: The forecast for Monday was derived by…

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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Consider the following actual and forecast demand levels for Big Mac hamburgers at a local McDonald's restaurant:

Day Actual Demand Forecast Demand

Monday 90.00 90.00

Tuesday 73.00 90.00

Wednesday 66.00 85.75

Thursday 50.00 80.81

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 exponential smoothing with a smoothing constant of 0.25. Using this exponential smoothing method, the forecast for Big Mac demand for Friday is _____ Big Macs (round your response to one decimal place).

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