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In January, a car dealer predicted February demand for 142 Ford Mustangs. Actually February demand was...

In January, a car dealer predicted February demand for 142 Ford Mustangs. Actually February demand was 153 autos. Using a smoothing constant of alpha = 0.20 forecast the March demand using exponential smoothing

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Answer #1

Using the exponential smoothing method

F(March) = 0.2*Actual(February) + (1-0.2)*F(February)

= 0.2*153 + 0.8*142

= 144.2

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