Question: A firm uses simple exponential smoothing to forecast demand for one of its products. Last period the forecast was 90 and the actual demand was

A firm uses simple exponential smoothing to forecast demand for one of its products. Last period the forecast was 90 and the actual demand was 100. If a smoothing parameter of 0.20 is used, then their forecast for this period would be

A. 92 B. 98 C. 100 D. 109 E. 118

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