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A check-processing center uses exponential smoothing to forecast the number of incoming checks each month. The number of checks received in June was 40 million,
A check-processing center uses exponential smoothing to forecast the number of incoming checks each month. The number of checks received in June was 40 million, while the forecast was 42 million. A smoothing constant of 0.25 is used. a) Using exponential smoothing and given , the forecast for the month of July = million checks received (round your response to one decimal place). b) If the check-processing center received 45 million checks in the month of July, then using exponential smoothing and given , the forecast for the month of August = million checks received (round your response to one decimal place). c) Exponential smoothing may not be an appropriate method to use for the check-processing center because: A. the check-processing center should observe seasonality in its processing requirements. B. the check-processing center should observe a cyclical trend in its processing requirements. C. the check-processing center's forecast is very hard to make as its processing requirements should have a very high variability. D. the check-processing center should observe an increasing trend in its processing requirements
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