The Yummy Ice Cream Company projects the demand for ice cream by using exponential smoothing. Last week the forecast was 100,000 gallons of ice cream, and 90,000 gallons was actually sold.
a. Using α = .1, prepare a forecast for next week.
b. Calculate the forecast using α = .2 and α = .3.
Which value of α gives the best forecast, assuming actual demand is 95,000 gallons?