If the old forecast is 100 and the latest actual demand is 83, what is the exponentiallysmoothed forecast for the next period? Alpha is 0.25. 140130Actual120Demand110100Forecast: a = .1Forecast: a = .3908023478PERIODSGURE 8.5 Exponential forecast where trend exists.DEMAND

New forecast=α×Latest demand+1-α×Previous forecast=0.25×83+1-0.25×100=20.75+75=95.75

Answered: 140 130 Actual 120 Demand 110 100…

Contemporary Marketing

18th Edition

ISBN:9780357033777

Author:Louis E. Boone, David L. Kurtz

Publisher:Louis E. Boone, David L. Kurtz

Chapter14: Pricing Strategies

Section14.2: Forecasting Demand

Problem 1LO

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140 130 Actual 120 Demand 110 100 Forecast: a = .1 Forecast: a = .3 90 80 2 3 4 7 8 PERIODS GURE 8.5 Exponential forecast where trend exists. DEMAND