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    Simple Exponential Smoothing

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    You are given that the forecast for the current period of 70 turned out to be 6 units less than the actual demand. The forecast for the next period is 75.8. What must alpha equal (rounded to 4 decimals) if a simple exponential smoothing forecast method were being used?

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    Solution Preview

    `Let t be the index for time periods
    F denotes Forecast
    A denotes actual demand

    F (t) be the forecast for period t. Similarly, F (t-1) be the forecast for period t-1
    A (t) be the actual demand in ...

    Solution Summary

    The solution shows calculation of alpha using Simple Exponential Smoothing forecast method.