Question

The historical sales for a certain model of a single serve coffee maker at a specialty cookware store in units is: January, 22; February, 17; March, 18; April, 24; May, 16, and June, 15. Use single exponential smoothing with α = 0.2, and compute the exponential smoothing forecasts for February through June. Do not round intermediate calculations. Round your answers to two decimal places.

Month	Observation	Forecast
January	22	22
February	17
March	18
April	24
May	16
June	15

Answer 1

α = 0.2

1-α = 1-0.2 =0.8

Fn = (An-1*α )+(Fn-1*(1-α))

Month	Observation	Calculation	Forecast
January	22	22	22
February	17	=22*0.2+22*0.8	22
March	18	=17*0.2+22*0.8	21
April	24	=18*0.2+21*0.8	20.40
May	16	=24*0.2+20.40*0.8	21.12
June	15	=16*0.2+21.12*0.8	20.10