A check-processing center uses exponential smooth- ing to forecast the number of incoming checks each month. The number of checks received in June was 40 million, while the fore- cast was 42 million. A smoothing constant of .2 is used. a) What is the forecast for July? b) If the center received 45 million checks in July, what would be the forecast for August? c) Why might this be an inappropriate forecasting method for the situation

Big Ideas Math A Bridge To Success Algebra 1: Student Edition 2015
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Author:HOUGHTON MIFFLIN HARCOURT
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Chapter9: Solving Quadratic Functions
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A check-processing center uses exponential smooth- ing to forecast the number of incoming checks each month. The number of checks received in June was 40 million, while the fore- cast was 42 million. A smoothing constant of .2 is used.

a) What is the forecast for July?
b) If the center received 45 million checks in July, what would be

the forecast for August?
c) Why might this be an inappropriate forecasting method for the situation 

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