The historical sales of smart watches sold by On Time Retails is given in the table below. Based on detailed analysis (not shown here) its sales manager has decided to use Simple Exponential Smoothing method to forecast the sales.

(A) Forecast the sales for week no 7, if alpha=0.2.  

What value of the smoothing constant, alpha, should the manager choose- alpha=0.2 or alpha=0.7?

Assume forecast for Week no-1 was 420 watches. Show all calculations

Sales (Units) 1 450 2 400 Week no 4 3 250 350 5 16. 425 375