The Year 2 forecast is 310 because both the actual demand for Year 1 and the initialized forecast for Year 1 are exactly 310. When a weighted average is calculated using two identical values, the result is that same value, regardless of the weights used.
Conditions: The smoothing constant α is fixed at 0.4.; The actual demand for Year 1 (A1) is 310.; The initialized forecast for Year 1 (F1) is 310.
The Year 2 forecast is 310 because both the actual demand for Year 1 and the initialized forecast for Year 1 are exactly 310. When a weighted average is calculated using two identical values, the result is that same value, regardless of the weights used.
Conditions: The smoothing constant α is fixed at 0.4.; The actual demand for Year 1 (A1) is 310.; The initialized forecast for Year 1 (F1) is 310.
The Year 4 forecast is written as 357 because the instructor rounds the exact calculated value of 357.2 to the nearest whole number. Demand is treated as discrete units in this context, so fractional forecasts are rounded off before being recorded in the table.
Conditions: The raw calculated value for Year 4 is 357.2.; The instructor applies a rounding convention to record whole numbers in the table.; Demand is assumed to be measured in discrete units.
The Year 4 forecast is written as 357 because the instructor rounds the exact calculated value of 357.2 to the nearest whole number. Demand is treated as discrete units in this context, so fractional forecasts are rounded off before being recorded in the table.
Conditions: The raw calculated value for Year 4 is 357.2.; The instructor applies a rounding convention to record whole numbers in the table.; Demand is assumed to be measured in discrete units.