Question: Question 3 (4 marks) In Suva, a cheque clearance centre uses exponential smoothing to forecast the amount of incoming cheques received each month. The amount

Question 3 (4 marks)

In Suva, a cheque clearance centre uses exponential smoothing to forecast the amount of incoming cheques received each month. The amount of cheques received in June was 50 million, whilst the forecast was 55 million. A smoothing constant of 0.4 is used.

(a) What is the forecast for July? (2 marks)

(b) Suppose the forecast centre received 70 million cheques in July, what would be the forecast for August? (2 marks)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!

A cheque processing centre uses exponential smoothing to forecast the number of incoming cheques each month. The number of cheques received in June was 40 million, while the fore- cast was 42...

0 I Help A cheque-processing centre uses exponential smoothing to forecast the number of incoming cheques each month. The number of cheques received in June 38 million while the forecast was 41...

Question content area Part 1 A cheque - processing centre uses exponential smoothing to forecast the number of incoming cheques each month. The number of cheques received in June was 4 2 million ,...

Question content area Part 1 A cheque - processing centre uses exponential smoothing to forecast the number of incoming cheques each month. The number of cheques received in June was 4 0 million ,...

QUESTION 1 CASE STUDY: THE NORTH - SOUTH AIRLINE In 2 0 1 0 , Northern Airlines * merged with Southeast Airlines to create the fourth largest U . S . carrier. The new North - South Airline inherited...

A cheque - processing centre uses exponential smoothing to forecast the number of incoming cheques each month. The number of cheques received in June was 4 2 million , while the forecast was 4 2...

FIJI REVENUE & CUSTOMS AUTHORITY 2015 ANNUAL REPORT I MANAGEMENT REPORT 01 Board of Directors 4 02 FRCA Management Team 5 03 Chief Executive Officer's Report 6 II CRITICAL SUCCESS FACTORS 2015 01...

The management of ELISA Company plans to replace a sorting machine that was acquired several years ago at a cost of P850,000. The machine has been depreciated to its salvage value of P90,000. A new...

The trial balance columns of the worksheet for Linus Company at June 30, 2012, are as follows. Other data:Operating expenses incurred on account, but not yet recorded, total $1,500.InstructionsEnter...

A unity feedback system has a plant 20 G(s) s(10.1s) (1 + 0.05s)

As the manager of Smith Construction, you need to make a decision on the number of homes to build in a new residential area where you are the only builder. Unfortunately, you must build the homes...