Two SES models forecast tomorrow’s inventory demand. Both start with a forecast of 100 units. Actual demand over the next two days is 140 and 100 units, respectively.
Model A uses α = 0.8.
Model B uses α = 0.2.
After incorporating both actual demand observations, which statement about the forecast for Day 3 is correct?

Question

Two SES models forecast tomorrow’s inventory demand. Both start with a forecast of 100 units. Actual demand over the next two days is 140 and 100 units, respectively.

Model A uses α = 0.8.
Model B uses α = 0.2.

After incorporating both actual demand observations, which statement about the forecast for Day 3 is correct?

Accepted Answer

Model A = 106.4, Model B = 106.4

Answer

Model A = 132.0, Model B = 108.0

Answer

Model A = 108.0, Model B = 106.4

Answer

Model A = 106.4, Model B = 108.0

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Two SES models forecast tomorrow’s inventory demand. Both start with a forecas...

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