Question: A cheque - processing centre uses exponential smoothing to forecast the number of incoming cheques each month. The number of cheques received in June was

A cheque-processing centre uses exponential smoothing to forecast the number of incoming cheques each month. The number of cheques received in June was 38 million, while the forecast was 42 million. A smoothing constant of 0.15 is used.
a) Using exponential smoothing and given i the forecast for the month of July = million cheques received. (Round your response to one decimal place.)
b) If the cheque-processing centre received 46 million cheques in the month of July, then using exponential smoothing and given , the forecast for the month of August = million cheques received. (Round your response to one decimal place.)
c) Exponential smoothing may not be an appropriate method to use for the cheque-processing centre because
A. the cheque-processing centre should observe a cyclical trend in its processing requirements.
B. the cheque-processing centre should observe seasonality in its processing requirements
C. the cheque-processing centre should observe an increasing trend in its processing requirements
D. the cheque-processing centre's forecast is very hard to make as its processing requirements should have a very high variability.
 A cheque-processing centre uses exponential smoothing to forecast the number of

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