Problem on the exponential smoothing

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Reference no: EM131821606

Question: The owner of the Chocolate Outlet Store wants to forecast chocolate demand.

Demand for the preceding four years is shown in the following table:

Forecast demand for Year 5 using the following approaches:

(1) a three-year moving average;

(2) a three-year weighted moving average using .40 for Year 4, .20 for Year 3 and .40 for Year 2;

(3) exponential smoothing with α = .30, and assuming the forecast for Period 1 = 68,000.

Reference no: EM131821606

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