Question: A dry cleaner uses exponential smoothing to forecast equipment usage at its main plant. September usage was forecasted to be 9 0 percent of capacity;

A dry cleaner uses exponential smoothing to forecast equipment usage at its main plant. September usage was forecasted to be 90 percent of capacity; actual usage was 87 percent of capacity. If a smoothing constant is increased from 0.1 to 0.8, which is true?
Question 18 options:
The actual usage will increase to meet the forecast in the next period
The forecast will remain the same for the next period
The forecast for the next period will be exactly 87 percent
The smoothing constant will decrease due to lower usage
The forecast will adjust closer to the actual usage for the next period

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