Question: Each month, Joes Auto Parts uses exponential smoothing (with = 0.25) to predict the number of cans of brake fluid that will be sold
Each month, Joe’s Auto Parts uses exponential smoothing (with α = 0.25) to predict the number of cans of brake fluid that will be sold during the next month. In June, Joe forecast that he would sell 37 cans of brake fluid during July. Joe actually sold 43 cans in July.
a. What is Joe’s forecast for brake fluid sales in August and September?
b. Suppose that Joe sells 32 cans of brake fluid in August. What is the revised forecast for September?
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