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
|
|
Wednesday
|
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?