Multiple choice

The sales of a product during the last four years were 860, 880, 870 and 890 units. The forecast for the fourth year was 876 units. If the forecast for the fifth year, using simple exponential smoothing is equal to the forecast using a three period moving average, the value of the exponential smoothing constant $\alpha$ is

  1. $\frac{1}{7}$
  2. $\frac{1}{5}$
  3. $\frac{2}{7}$
  4. $\frac{2}{5}$
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation