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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?

https://brainmass.com/statistics/multivariate-time-series-and-survival-analysis/simple-exponential-smoothing-forecast-method-units-400942

#### 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.

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