Answer:
b. 77
Explanation:
The formula for forecasting is :
[tex]F_{t}[/tex] = [tex]\alpha D_{t-1}[/tex] + (1 - [tex]\alpha[/tex]) [tex]F_{t-1}[/tex]
where [tex]F_{t}[/tex] is forecast for the period and [tex]D_{t}[/tex] is the actual demand for the period.
Last week forecast is = [tex]\alpha[/tex] * Demand 2 weeks ago + (1 - [tex]\alpha[/tex]) * Forecast 2 weeks ago
0.2 * 65 + (1 - .02) * 90 = 13
Current week forecast is = [tex]\alpha[/tex] * Demand Last weeks + (1 - [tex]\alpha[/tex]) * Forecast Last weeks
0.2 * 50 + (1 - 0.2) * 83 = 77.
