Simple Exponential Smoothing Is Being Used to Forecast Demand

question 35

Multiple Choice

Simple exponential smoothing is being used to forecast demand. The previous forecast of 66 turned out to be four units less than actual demand. The next forecast is 66.6, implying a smoothing constant, alpha, equal to:

• A) .01.
• B) .10.
• C) .15.
• D) .20.
• E) .60.

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