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    Question

    The last period’s forecast was 70 and demand

    was 60. What is the simple exponential smoothing forecast with alpha of 0.4 for the next period?
    A 63.8 Correct Answer Incorrect Answer
    B 65 Correct Answer Incorrect Answer
    C 62 Correct Answer Incorrect Answer
    D 66 Correct Answer Incorrect Answer
    E 69 Correct Answer Incorrect Answer

    Solution

    S(t-1 )= 70

    X(t) = 60

    Alpha = 0.4

    s t  = αx t +(1 – α)s t-1 = s t-1 + α(x t  – s t-1 )

    Substituting the values we get,

    0.4*60 + 0.6*70= 24 + 42= 66

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