List of formulas:

• Simple moving average method: Ft+1 = (Dt + Dt-1 + Dt-2 + + Dt-n+1)/n
• Weighted moving average method: Ft+1 = W1D1 + W2D2 + + WnDt-n+1
• Exponential smoothing method: Ft+1 = Ft + (Dt Ft)

Demands for a newly developed salad bar at the PQR restaurant for the first four months of this year are shown in the table below. Round to three decimal places.

---------------------------------- Month Demand ----------------------------------

January 67

February 58

March 71

April 65

---------------------------------- Use the problem statement and table to answer the questions below.

Question:

What is the forecast for May using the exponential smoothing method with an alpha equal to 0.40? [Note: An initial value for the forecast is not given.]

A. 61.476

B. 64.643

C. 65.281