-
The sale of cycles in a shop in four consecutive months are given as 70, 68, 82, 95. Exponentially smoothing average method with a smoothing factor of 0.4 is used in forecasting. The expected number of sales in the next month is
-
- 59
- 72
- 86
- 136
Correct Option: C
Ft+1 = Dt + α(1 – α) Dt–1 + α(1 – α) ² Dt–2
Ft+1 = 0.4 (95) + 0.4 (1 – 0.4)² + α(1 – α)³ Dt–3 + (0.4) (1 – 0.4)² × 68 + (0.4) (1 – 0.4)³ × 70
Ft–1 = 73.52 units
