Question

need help with the 3rd part

Lenovo uses the ZX-81 chip in some of its laptop computers. The prices for the chip during the last 12 months were as follows: Month January February March April May June Price Per Chip $1.90 $1.61 $1.60 $1.85 $1.90 $1.95 Month July August September October November December Price Per Chip $1.80 $1.85 $1.60 $1.57 $1.62 $1.75 This exercise contains only part d. With a = 0.1 and the initial forecast for October of $1.83, using exponential smoothing, the forecast for periods 11 and 12 is (round your responses to two decimal places): Month Oct Nov Dec Forecast $1.83 1.80 1.78 With a = 0.3 and the initial forecast for October of $1.77, using exponential smoothing, the forecast for periods 11 and 12 is (round your responses to two decimal places): Month Oct Nov Dec Forecast $1.77 1.71 1.68 With a = 0.5 and the initial forecast for October of $1.73, using exponential smoothing, the forecast for periods 11 and 12 is (round your responses to two decimal places): Month Oct Nov Dec recast $1.73 Enter your answer in the edit fields and then click Check Answer.

Answer 1

Where F(t-1) is the forecast for the previous period and A(t-1) is the actual demand for the previous period.

Forecast for November= Forecast for october+ alpha(actual price for october-forecast for October)

= 1.73 + (0.5* (1.57 - 1.73)) = 1.65
Forecast for December = Forecast for December+ alpha(actual price for November-forecast for November)

= 1.65+ (0.5 * (1.62 - 1.65)) = 1.63