Question

A company wants to generate a forecast for unit demand for year 2009 using exponential smoothing. The actual demand in year 2008 was 120. The forecast demand in year 2008 was 110. Using this data and a smoothing constant alpha of 0.1, which of the following is the resulting year 2009 forecast value?
A. 100
B. 110
C. 111
D. 114
E. 120

Answer

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