A check$-$processing center uses exponential smoothing to forecast the number of incoming checks each month. The

number of checks received in June was $38$ million, while the forecast was $43$ million. A smoothing constant of $0\mathrm{.}15$ is

used.

a$)$ Using exponential smoothing and given $,$ the forecast for the month of July $=$ million checks received $($round

your response to one decimal place$).$

b$)$ If the check$-$processing center received $44$ million checks in the month of July, then using exponential smoothing

and given $,$ the forecast for the month of August $=$ million checks received $($round your response to one

decimal place$).$

c$)$ Exponential smoothing may not be an appropriate method to use for the check$-$processing center because:

A$.$ the check$-$processing center should observe an increasing trend in its processing requirements.

B$.$ the check$-$processing center should observe a cyclical trend in its processing requirements.

C$.$ the check$-$processing center should observe seasonality in its processing requirements.

D$.$ the check$-$processing center's forecast is very hard to make as its processing requirements should have a

very high variability.