Question

A counseling service records the number of calls to their hotline for the last year. What is the forecast for august if the forecast for june was 164 and the service uses exponential smoothing with an alpha of​ 0.8?

Answer 1

175.36

Step-by-step explanation:

Calculation for the forecast for August

First step is to find forecast for July.

Using this formula

July forecast = ( June Demand x Factor)× [(1-factor) x Expected forecast]

Let plug in the formula

July forecast=(165 x 0.8) + [ (1-0.8) x 164]

July forecast= 132 + 32.8

July forecast= 164.8

Now let calculate for the August forecast using this formula

August forecast = ( July

Demand x Factor)×[(1-factor) x Expected forecast]

Let plug in the formula

August forecast = (178 x 0.8) + [(1-0.8) x 164.8]

August forecast = = 142.4 + 32.96

August forecast = 175.36

Therefore August forecast will be 175.36