In forecasting by exponential smoothing, if a is a smoothing constant, then:
ANewForecast=α(latestsalesfigure)+(1−α)(oldforecast)
BNewForecast=α(latestsalesfigure)−(1−α)(oldforecast)
CNewforecast=α(latestsalesfigure)+(1+α)(oldforecast)
DNewForecast=α(latestsalesfigure)−(1+α)(oldforecast)
Answer:
NewForecast=α(latestsalesfigure)+(1−α)(oldforecast)
Read Explanation:
In exponential smoothing method of forecast, the forecast for the next period is equal to Ft=αDt−1+(1−α)Ft−1,where, Dt−1 = latest figure sale or latest demand, Ft−1 = old forecast.