The Yummy Ice Cream Company uses the exponential smoothing method. Last week the forecast was 100,000 gallons of ice cream, and 90,000 gallons was actually sold.a. Using α = .1, prepare a forecast for next week.b. Calculate the forecast using α = .2 and α = .3. Which value of α gives the best forecast, assuming actual demand is 95,000 gallons?
The Yummy Ice Cream Company uses the exponential smoothing method. Last week the forecast was 100,000 gallons of ice cream, and 90,000 gallons was actually sold.a. Using α = .1, prepare a forecast for next week.b. Calculate the forecast using α = .2 and α = .3. Which value of α gives the best forecast, assuming actual demand is 95,000 gallons?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter13: Regression And Forecasting Models
Section: Chapter Questions
Problem 42P: The file P13_42.xlsx contains monthly data on consumer revolving credit (in millions of dollars)...
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The Yummy Ice Cream Company uses the exponential smoothing method. Last week the
a. Using α = .1, prepare a forecast for next week.
b. Calculate the forecast using α = .2 and α = .3. Which value of α gives the best forecast, assuming actual demand is 95,000 gallons?
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