For a given data group, simple exponential smoothing is being used to forecast demand. The forecast of a given period is 110, which turned out to be 4 units more than actual demand. The forecast for next period is 109.2. Based on information given, what is smoothing constant, alpha? Select one:

a. 0.20
b. 0.10
c. 0.15
d. None of the choices
e. 0.60

The smoothing constant alpha is 0.20 (Option a)

Step-by-step explanation:

To solve this problem, first we write the succession of the simple exponential smoothing:

Where s(t) is the forecast for period t, s(t-1) is the forecast for period (t-1), xt is the real demand for period t, and alpha is the smoothing constant.

All but the alpha constant are known

s(t)=109.2

s(t-2)=110

xt=110-4=106

Then, we can calculate alpha as:

the sum of all the angles in a triangle are equal to 180

so you can add   the 3 given angles together to equal 180:

5y + 2y + 2y = 180

or since all three angles have the same letter, combine the 3 angles to equal 180:

9y = 180

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