Problem 12-1 Assume you are forecasting with an exponential smoothing model usin
ID: 407626 • Letter: P
Question
Problem 12-1
Assume you are forecasting with an exponential smoothing model using = 0.6.
How much weight is placed on the most recent actual demand? (Round your answer to 1 decimal place.)
How much weight is given to the demand one time period older than the most recent data? (Round your answer to 2 decimal places.)
How much weight is given to data from two periods in the past? (Round your answer to 3 decimal places.)
Problem 12-1
Assume you are forecasting with an exponential smoothing model using = 0.6.
a.How much weight is placed on the most recent actual demand? (Round your answer to 1 decimal place.)
b.How much weight is given to the demand one time period older than the most recent data? (Round your answer to 2 decimal places.)
c.How much weight is given to data from two periods in the past? (Round your answer to 3 decimal places.)
Actual decimals needed for answersExplanation / Answer
exponential smoothing is commonly applied to smooth data, as many window functions are in signal processing, acting as low-pass filters to remove high frequency noise.
a. when we use aplha as 0.6, it means we are using the weight as 60%.
b. when we consider the demand of recent one, in this example it is taken as 60% only.
c. when we taken as two periods, we should take the weight as 60% is for present and 40% for the past infomation