Problem:
Consider the following actual and forecast demand levels for hamburgers at a local restaurant:
Day Actual Demand Forecast Demand
Monday 88 88
Tuesday 72 88
Wednesday 68 84
Thursday 48 80
Friday
The forecast for Monday was derived by observing Monday's demand level and setting Monday's forecast level equal to this demand level. Subsequent forecasts were derived by using exponential smoothing with a smoothing constant of 0.25.
Reqquired:
Question 1) Using this exponential smoothing method, what is the forecast for hamburger demand for Friday?
Provide the solution of the given numerical problem and illustrate step by step calculation.