A firm uses simple exponential smoothing with alpha of 0.1 to forecast demand. The forecast for the week of February 1 was 500 units, whereas actual demand turned out to be 450 units. (a) Forecast the demand for the week of February 8. (b) Assume that the actual demand during the week of February 8 turned out to be 505 units. Forecast the demand for the week of February 15.
A firm uses simple exponential smoothing with alpha of 0.1 to forecast demand. The forecast for the week of February 1 was 500 units,…