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In forecasting by exponential smoothing, if a is a smoothing constant, then:

ANewForecast=α(latestsalesfigure)+(1α)(oldforecast)New Forecast =\alpha (latest sales figure) + (1 - \alpha) (old forecast)

BNewForecast=α(latestsalesfigure)(1α)(oldforecast)New Forecast = \alpha (latest sales figure) - (1 - \alpha) (old forecast)

CNewforecast=α(latestsalesfigure)+(1+α)(oldforecast)New forecast = \alpha (latest sales figure) + (1 + \alpha) (old forecast)

DNewForecast=α(latestsalesfigure)(1+α)(oldforecast)New Forecast = \alpha (latest sales figure) - (1 + \alpha) (old forecast)

Answer:

NewForecast=α(latestsalesfigure)+(1α)(oldforecast)New Forecast =\alpha (latest sales figure) + (1 - \alpha) (old forecast)

Read Explanation:

In exponential smoothing method of forecast, the forecast for the next period is equal to Ft=αDt1+(1α)Ft1F_t = \alpha D_{t-1} + (1-\alpha) F_{t- 1},where, Dt1D_{t-1} = latest figure sale or latest demand, Ft1F_{t-1} = old forecast.


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