Homework Help is Here – Start Your Trial Now!
Math
Statistics
Using an alpha of 0.50 and $2,927.92 as the forecast for week 52, what is the exponential smoothing forecast for week 53 for Small Town Restaurant (see downloaded file for actual demand)? Exponential smoothing equation is provided below. Provide two decimal places and use normal rounding. F₁ = F₁_₁ + α(A₂_₁ − F₁-₁) 1-1

Using an alpha of 0.50 and $2,927.92 as the forecast for week 52, what is the exponential smoothing forecast for week 53 for Small Town Restaurant (see downloaded file for actual demand)? Exponential smoothing equation is provided below. Provide two decimal places and use normal rounding. F₁ = F₁_₁ + α(A₂_₁ − F₁-₁) 1-1

Calculus For The Life Sciences
Calculus For The Life Sciences
2nd Edition
ISBN:9780321964038
Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Chapter1: Functions
Section1.CR: Chapter 1 Review
Problem 86CR
See similar textbooks
icon
Related questions
Question

Use data to solve for week 53

What happens if we use a larger alpha value in our exponential smoothing forecast, such as 0.80 opposed to 0.50?
Group of answer choices

It would be more accurate because it includes more of the forecast error.

There would be no change.

It would be more sensitive to changes.

It would smooth out the variation more.

¶ ¶ Situation: The "Small Town Restaurant" uses a forecast of weekly sales revenue to plan their inventory ordering and staffing for the upcoming week. They have been using a regression forecast for the past year and wonder if it is the most accurate method. You have been brought in to determine if another forecasting technique would be more accurate. Data for their weekly sales for the past year is below: ¶ Week Revenue. X Week 1 2 $3,016 3 $3,062.¤ ¤ 4 $ 3,074. X 5 $3,002. 6 ----3,054-¤¤ 7 $3,002.¤ ¤ 8 9 $3,078¤ ¤ 10 $3,010- X 11 $3,148. 12 $3,146 $3,198. 13 X ¶ $3,157.** $ Forecasting S $ 2,984-¤¤ A - Small Town Restaurant Revenue. 14 $3,157 ¤ $3,016 ¤ 15 16 $3,019 ¤ 17 $3,045 ¤ 18 19 $3,046 ¤ $3,157 ¤ $3,016 ¤ $3,078 ¤ 22 $2,984 20 21 ¤ 23 $3,002 ¤ 24 $3,054 ¤ 25 $3,002 ¤ 26 $2,941 X A Week Revenue. 27 $2,899 ¤ 28 $2,942 ¤ 29 $3,062 X ¤ 30 $3,074 31 $3,013 ¤ ¤ 32 $3,067 33 $3,148 ¤ 34 $3,146 ¤ 35 $3,198 ¤ 36 $3,082 ¤ 37 $3,146 ¤ 38 $3,150 ¤ 39 $3,221 ¤ X B Week Revenue. ¤ 40 $3,298. 41 $3,201. 42 $3,156. 43 $3,017. X 44 $3,156. 45 $3,097. 46 $ 2,978. X 47 $3,120 48 $3,156. 49 $3,048. 50 $2,948. 51 $ 2,840. 52 $2,921. X $ 159,532 Annual total You will use this data in the next few steps to complete various time series forecasts and compare them to determine the most accurate method. ¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤ X{ X{ X{ X{
Transcribed Image Text:¶ ¶ Situation: The "Small Town Restaurant" uses a forecast of weekly sales revenue to plan their inventory ordering and staffing for the upcoming week. They have been using a regression forecast for the past year and wonder if it is the most accurate method. You have been brought in to determine if another forecasting technique would be more accurate. Data for their weekly sales for the past year is below: ¶ Week Revenue. X Week 1 2 $3,016 3 $3,062.¤ ¤ 4 $ 3,074. X 5 $3,002. 6 ----3,054-¤¤ 7 $3,002.¤ ¤ 8 9 $3,078¤ ¤ 10 $3,010- X 11 $3,148. 12 $3,146 $3,198. 13 X ¶ $3,157.** $ Forecasting S $ 2,984-¤¤ A - Small Town Restaurant Revenue. 14 $3,157 ¤ $3,016 ¤ 15 16 $3,019 ¤ 17 $3,045 ¤ 18 19 $3,046 ¤ $3,157 ¤ $3,016 ¤ $3,078 ¤ 22 $2,984 20 21 ¤ 23 $3,002 ¤ 24 $3,054 ¤ 25 $3,002 ¤ 26 $2,941 X A Week Revenue. 27 $2,899 ¤ 28 $2,942 ¤ 29 $3,062 X ¤ 30 $3,074 31 $3,013 ¤ ¤ 32 $3,067 33 $3,148 ¤ 34 $3,146 ¤ 35 $3,198 ¤ 36 $3,082 ¤ 37 $3,146 ¤ 38 $3,150 ¤ 39 $3,221 ¤ X B Week Revenue. ¤ 40 $3,298. 41 $3,201. 42 $3,156. 43 $3,017. X 44 $3,156. 45 $3,097. 46 $ 2,978. X 47 $3,120 48 $3,156. 49 $3,048. 50 $2,948. 51 $ 2,840. 52 $2,921. X $ 159,532 Annual total You will use this data in the next few steps to complete various time series forecasts and compare them to determine the most accurate method. ¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤ X{ X{ X{ X{
Using an alpha of 0.50 and $2,927.92 as the forecast for week 52, what is the exponential smoothing forecast for week 53 for Small Town Restaurant (see downloaded file for actual demand)? Exponential smoothing equation is provided below. Provide two decimal places and use normal rounding. F₁ = F₁_₁ + a(A₁_₁ − F₁-₁) - t
Transcribed Image Text:Using an alpha of 0.50 and $2,927.92 as the forecast for week 52, what is the exponential smoothing forecast for week 53 for Small Town Restaurant (see downloaded file for actual demand)? Exponential smoothing equation is provided below. Provide two decimal places and use normal rounding. F₁ = F₁_₁ + a(A₁_₁ − F₁-₁) - t
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 8 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
Calculus For The Life Sciences
Calculus For The Life Sciences
Calculus
ISBN:
9780321964038
Author:
GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:
Pearson Addison Wesley,
Glencoe Algebra 1, Student Edition, 9780079039897…
Glencoe Algebra 1, Student Edition, 9780079039897…
Algebra
ISBN:
9780079039897
Author:
Carter
Publisher:
McGraw Hill
Functions and Change: A Modeling Approach to Coll…
Functions and Change: A Modeling Approach to Coll…
Algebra
ISBN:
9781337111348
Author:
Bruce Crauder, Benny Evans, Alan Noell
Publisher:
Cengage Learning
Algebra and Trigonometry (MindTap Course List)
Algebra and Trigonometry (MindTap Course List)
Algebra
ISBN:
9781305071742
Author:
James Stewart, Lothar Redlin, Saleem Watson
Publisher:
Cengage Learning
Big Ideas Math A Bridge To Success Algebra 1: Stu…
Big Ideas Math A Bridge To Success Algebra 1: Stu…
Algebra
ISBN:
9781680331141
Author:
HOUGHTON MIFFLIN HARCOURT
Publisher:
Houghton Mifflin Harcourt
SEE MORE TEXTBOOKS