Question: Suppose that you are using exponential smoothing with alpha = 0.5, and your initial forecast 5 months ago was for 100 units. If the actual

Suppose that you are using exponential smoothing with alpha = 0.5, and your initial forecast 5 months ago was for 100 units. If the actual demand last month was 90 units, which of the following is definitely true?

The forecast for this month should be 95.

We need more information to determine this month's forecast.

The forecast for this month should be 100.

The forecast for this month should be 90.

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