Question

The following tabulations are actual sales of units for six months and a starting forecast in January. Actual forecast: January - 102, February - 89, March - 103, April - 75, May - 66, June - 89. Calculate forecasts for the remaining five months using simple exponential smoothing with α = 0.2.

Answer 1

To calculate the forecasts for the remaining five months using simple exponential smoothing with α = 0.2, use the formula Forecastt = α * Actualt + (1 - α) * Forecastt-1.

Step-by-step explanation:

To calculate the forecasts for the remaining five months using simple exponential smoothing with α = 0.2, we can use the formula:

Forecastt = α * Actualt + (1 - α) * Forecastt-1

Using this formula, we can calculate the forecasts for July to November:

• Forecast for July = (0.2 * 189.4) + (0.8 * 189.7) = 189.5
• Forecast for August = (0.2 * 189.5) + (0.8 * 189.7) = 189.5
• Forecast for September = (0.2 * 189.5) + (0.8 * 189.7) = 189.6
• Forecast for October = (0.2 * 189.6) + (0.8 * 189.7) = 189.6
• Forecast for November = (0.2 * 189.6) + (0.8 * 189.7) = 189.6