Question

Problem 3-3 (Algo) A dry cleaner uses exponential smoothing to forecast equipment usage at its main plant. August usage was forecasted to be 46 percent of capacity; actual usage was 52 percent of capacity. A smoothing constant of .10 is used. a. Prepare a forecast for September. (Round your final answer to 2 decimal places.) b. Assuming actual September usage of 53 percent, prepare a forecast for October usage. (Round your answer to 2 decimal places.)

Answer 1

A.Forecast for September=46.9

B. Forecast for October usage=47.51

Step-by-step explanation:

a) preparation of the forecast for September

Forecast for September= 46 + .10 (52 − 43)

Forecast for September=46+.10(9)

Forecast for September=46+0.9

Forecast for September=46.9

Therefore Forecast for September will be 46.9

b) Preparation of the forecast for October usage

Forecast for October usage=46.9 + .10 (53-46.9)

Forecast for October usage=46.9+.10(6.1)

Forecast for October usage=46.9+0.61

Forecast for October usage=47.51

Therefore Forecast for October usage will be 47.51