# 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.

$2.49