Question

A concert promoter is forecasting this year's attendance for one of his concerts based on the following historical data: What is this year's forecast using exponential smoothing with alpha = .2, if last year's smoothed forecast was 15,000?

Answer 1

The smoothed forecast for this year depends on last years forecast and

observation, as well as the value of alpha.

Response:

• The forecast for this year is 16,000

What relationship can be used to find the smoothed forecast?

The given parameter are;

α = 0.2

From a similar question online, we have the following possible values;

Last year's smoothed forecast, F₄ = 15,000

Last years actual value, A₄ = 20,000

Required:

The forecast this year

Solution:

The exponential smoothing relationship is expressed as follows;

F₅ = F₄ + α·(A₄ - F₄)

Which gives;

F₅ = 15,000 + 0.2 × (20,000 - 15,000) = 16,000

• This year's forecast, F₅ = 16,000

Learn more about forecasting here:

https://brainly.com/question/4941976