Question:-
Using the exponential smoothing method of forecasting, what will be the forecast for the fourth week if the actual and forecasted demand for the third week is 480 and 500 respectively and a = 0.2
Option (A)
400
Option (B)
496
Option(C)
500
Option(D)
504
Correct Option:
(B)
Question Solution:
F4 = a y3 + (1-a) F3
= (0.2) (480) + (0.8) 500
= 96 + 400 = 496
Where
F4 = forecast for fourth week
y3 = actual demand for third week
F3 = forecast for third week
question-answer-faq-8917