# Question: You are using exponential smoothing to obtain monthly forecasts of

You are using exponential smoothing to obtain monthly forecasts of the sales of a certain product. The forecast for last month was 2,083, and then the actual sales turned out to be 1,973. Obtain the forecast for next month for each of the following values of the smoothing constant: α = 0.1, 0.3, and 0.5.

## Answer to relevant Questions

If α is set equal to 0 or 1 in the exponential smoothing expression, what happens to the forecast? Consider the historical data contained in the Excel File “Sales Data 2” on this website. Use ASPE to fit continuous distributions to these data. (a) Which distribution provides the closest fit to the data? What are the ...Assume that the probability of rain tomorrow is 0.5 if it is raining today, and assume that the probability of its being clear (no rain) tomorrow is 0.9 if it is clear today. Also assume that these probabilities do not ...Consider the following inventory policy for the certain product. If the demand during a period exceeds the number of items available, this unsatisfied demand is backlogged; i.e., it is filled when the next order is received. ...Reconsider the example presented at the end of Sec. 29.8. Suppose now that a third machine, identical to the first two, has been added to the shop. The one maintenance person still must maintain all the machines. (a) Develop ...Post your question