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Simple exponential smoothing is being used to forecast demand. The previous forecast of 66 turned out to be four units less than actual demand. The next forecast is 66.6, implying a smoothing constant, alpha, equal to _____ ? The answer is alpa 15, but how did you get the answer?

Respuesta :

funmilaciousfunmie78

Answer:

15

Explanation:

Using the Exponential smoothing model below:-

Ft= Ft-1 + α (At-1 – Ft-1)

Where,

Ft= new forecast

Ft-1= previous period forecast

At-1= previous period actual demand

α =?     Ft-1=66    At-1=70        Ft= 66.6

Ft = 66 + α (70-66)

   66.6 = 66+ 4* α

   (66.6-66)= 4* α

   α = 0.6/4

     α = 0.15

Thus, alpha value will be 0.15 for simple exponential smoothing.

Parrain

Based on the previous forecast and the next forecast, the smoothing constant, alpha, for the simple exponential smoothing model is 0.15.

What is the smoothing constant alpha?

This can be found by the formula:
= Constant x Previous Actual demand + (1 - Constant) x Previous forecast

Previous Actual demand:

= 66 + 4 units

= 70 units

Smoothing constant:
66.6 = 70 x constant + 66 - 66 x Constant

66.6 - 66 = 70 x Constant - 66 x Constant

4 x Constant = 0.6

Constant = 0.6 / 4

= 0.15

Find out more on simple exponential smoothing at https://brainly.com/question/19551705.

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