Given the following data, use exponential smoothing (a = .2) to develop a demand forecast for period 3. Assume the forecast for the initial period is 5. What is the forecast?
Period Demand
1 7
2 9
a) 9.00
b) 3.72
c) 9.48
d) 5.00
e) 6.12
Answer: e) 6.12