Question

In the given exponential smoothing scenario, how would you determine the forecast for weeks 2 through 10 with an initial forecast of 19.0 for week 1 and an

α of 0.55? Please round your responses to two decimal places.

Answer 1

To determine the forecast for weeks 2 through 10 in exponential smoothing, use the weighted average formula.

Step-by-step explanation:

In exponential smoothing, the forecast for any given week is calculated by taking a weighted average of the previous forecast and the actual value for that week. The weight given to the previous forecast is determined by the smoothing constant, α. To determine the forecast for week 2, we use the formula:

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

Using an initial forecast of 19.0 for week 1 and an α of 0.55, we can calculate the forecast for each subsequent week by using the formula and the previous forecast and actual values.