Which value of a gives the best forecast

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Reference no: EM131911758

Question: 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?

Reference no: EM131911758

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