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?

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?

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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