For the data set, perform exponential smoothing with alpha = 0.1 to determine the forecast for week 20.  weekSales (1000s of gallons)1172213194235186167208189221020111512221331143415311633172818321930

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For the data set, perform exponential smoothing with alpha = 0.1 to determine the forecast for week 20.

 week Sales (1000s of gallons) 1 17 2 21 3 19 4 23 5 18 6 16 7 20 8 18 9 22 10 20 11 15 12 22 13 31 14 34 15 31 16 33 17 28 18 32 19 30
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Step 1

Given data and forecast for the following week is shown here

Step 2

Forecast formula

Ft+1 = Ft + α (At - Ft)

Assuming the forecast for week 1 is same as actual sales

F2 = F1 + α (A1 – F1) = 17 + 0.1 x 0 = 17

F3 = F2 + α (A2 – F2) = 17 + 0.1 x 4 = 17.4

F4 = F3 + α (A3 – F3) = 17.4 + 0.1 x 1.60 = 17.56

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