Question

Use exponential smoothing with a given alpha (α) value to forecast sales for a specific month, including the formula and calculations. Make sure the response is in plain text.

Answer 1

To forecast sales using exponential smoothing, use the formula: Forecast for next month = (1 - α) * Actual sales in the current month + α * Forecasted sales for the previous month. Plug in the given α value and follow the steps to calculate the forecasted sales for the next month.

Step-by-step explanation:

To forecast sales for a specific month using exponential smoothing, we need to use the formula: Forecast for next month = (1 - α) * Actual sales in the current month + α * Forecasted sales for the previous monthly's assume that the α value given is 0.2. To forecast sales for a specific month, follow these steps Step 1: Start by plugging in the actual sales value for the current month and the forecasted sales value for the previous month into the formula Step 2: Calculate the forecasted sales for the next month by multiplying (1 - α) with the actual sales and adding α times the forecasted sales from the previous month Step 3: Repeat step 2 for subsequent months, using the forecasted sales from the previous month as the input for the current calculation.