Question: graphs or manual calculations are okay a check processing company...
Graphs or manual calculations are okay! A check processing company uses exponential smoothing to forecast the number of incoming checks each month. The number if checks received in June was 40 million, while the forecast for June was 42 million. A smoothing constant of .2 is used.
a.) What is the forecast for July?
b.) If the company received 45 million checks in July, what would be the forecast for August?
c.) Why might this method of forecasting be inappropriate for this situation?