Consider the following actual and forecast demand levels for
Consider the following actual and forecast demand levels for Big Mac hamburgers at a local McDonald’s restaurant:
|
Day |
Actual demand |
Forecast demand |
|
Monday |
88 |
88 |
|
Tuesday |
72 |
88 |
|
Wednesady |
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. Using this exponential smoothing method, what is the forecast for Big Mac demand for Friday?
