During the past three weeks sales of a brand of medicine hav

During the past three weeks sales of a brand of medicine have been as follows:

Week                    Sales

1                              71

2                              70

3                               69

Using exponential smoothing with a smoothing constant of .10, forecast sales for week 4. (Note: Round answer

to the nearest whole number of sales)

Solution

forecasting for 4th week = 0.1*69+0.1*0.9*70+0.1*0.9*0.9*71 = 18.951