Suppose That a Simple Exponential Smoothing Model Is Used (With

question 106

Multiple Choice

Suppose that a simple exponential smoothing model is used (with a = 0.30) to forecast monthly sandwich sales at a local sandwich shop. After June's demand is observed at 1520 sandwiches, the forecasted demand for July is 1600 sandwiches. At the beginning of July, what would be the forecasted demand for August?

• A) 1520
• B) 1544
• C) 1550
• D) 1600

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Definitions:

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