Simple exponential smoothing with α = 0.3 is being used to forecast sales of digital cameras at… 1 answer below »

Simple exponential smoothing with α = 0.3 is being used to forecast sales of digital cameras at Lowland Appliance. Forecasts are made on a monthly basis. After August camera sales are observed, the forecast for September is 100 cameras.

a. During September, 120 cameras are sold. After observing September sales, what do you forecast for October camera sales? For November camera sales?

b. June sales were recorded as 10 cameras; however, 100 cameras were actually sold in June. After correcting for this error, develop a forecast for October camera sales.