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A company wants to generate a forecast for unit demand for year 2018 using exponential smoothing. The actual demand in year 2017 was 120. The forecast demand in year 2017 was 110. Using this data and a smoothing constant alpha of 0.1. What is the resulting year 2018 forecast value?

Respuesta :

Tundexi

Answer:

111

Explanation:

Exponential Smoothing forecast for 2018 = (Alpha*Actual demand in 2017) + ((1 - Alpha)*Forecast demand for 2017: Where Alpha = 0.1, Actual demand in 2017 = 120 and Forecast for 2017 = 110

Exponential Smoothing forecast for 2018 = (0.1 * 120) + ( (1 - 0.1) * 110)

Exponential Smoothing forecast for 2018 = (0.1 * 120) + (0.9 * 110)

Exponential Smoothing forecast for 2018 = 12 + 99

Exponential Smoothing forecast for 2018 = 111