Reference no: EM131371423
A? check-processing center uses exponential smoothing to forecast the number of incoming checks each month. The number of checks received in June was 38 ?million, while the forecast was 42 million. A smoothing constant of 0.25 is used.
?a) Using exponential smoothing and given alphaα?, the forecast for the month of July? = ______ million checks received ?(round your response to one decimal? place).
?b) If the? check-processing center received 44 million checks in the month of? July, then using exponential smoothing and given alphaα? the forecast for the month of August? = ________ million checks received ?(round your response to one decimal? place).
?c) Exponential smoothing may not be an appropriate method to use for the? check-processing center?because:
A. the? check-processing center should observe seasonality in its processing requirements.
B. the? check-processing center's forecast is very hard to make as its processing requirements should have a very high variability.
C. the? check-processing center should observe an increasing trend in its processing requirements.
D. the? check-processing center should observe a cyclical trend in its processing requirements.
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