Given that the previous forecast of 65 turned out to be four units less than the actual demand.

Given that the previous forecast of 65 turned out to be four units less than the actual demand. The next forecast is 66. What would be the value of alpha if the simple exponential smoothing forecast method is being used?
     a. 0.02
     b. 0.4
     c. 0.04
     d. 0.25
     e. none of the above

 

Solution