The Business Analyst for Ace Business Machines, Inc What Is the Forecast for This Year Using Exponential Smoothing

question 74

Multiple Choice

The business analyst for Ace Business Machines, Inc. wants to forecast this year's demand for manual typewriters based on the following historical data:
$$\begin{array} { | c | c | } \hline \text { Time Periad } & \text { Demand } \\\hline 5 \text { years ago } & 900 \\\hline 4 \text { years ago } & 700 \\\hline 3 \text { years ago } & 600 \\\hline 2 \text { years ago } & 500 \\\hline \text { Last year } & 300 \\\hline\end{array}$$
What is the forecast for this year using exponential smoothing with ? = 0.4, if the forecast for two years ago was 750?

• A) 163
• B) 180
• C) 300
• D) 467
• E) 510