Question: exponential smoothing model for forecasting sales is hat ( y ) t + 1 = y t + ( 1 - ) h a t

exponential smoothing model for forecasting sales is
hat(y)t+1=yt+(1-)hat(y)t
where
hat(y)t+1= forecast of sales for period t+1
yt= actual value of sales for period t
hat(y)t= forecast of sales for period t
= smoothing constant 0a1.
(Note: We are displaying rounded intermediate values for practical purposes. However, the calculations are made using the unrounded values.)
Exponential Smoothing Model for =0.3
In using exponential smoothing models, one tries to choose the value of that provides the best forecasts.
the values in the table below with =0.3, try different values of to see if you can get a smaller sum of squared forecast errors.
Use Excel Solver to find the value of a that minimizes the sum of squared forecast errors. (Round your answers to three decimal places.)
exponential smoothing model for forecasting sales is hat(y)t+1=yt+(1-)hat(y)t where hat(y)t+1= forecast

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