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Data collected on the yearly registrations for a Six Sigma seminar at the Qualit

ID: 346647 • Letter: D

Question

Data collected on the yearly registrations for a Six Sigma seminar at the Quality College are shown in the following table:

  

Year

1

2

3

4

5

6

7

8

9

10

11

Registrations (000)

5.00

5.00

5.00

4.00

10.00

7.00

6.00

10.00

11.00

12.00

15.00

a) Calculate the forecasted registrations for years 2 through 12 using exponential smoothing, with a smoothing constant

(alpha )

of .40

and a starting forecast of

6.00

for year 1 (round your responses to one decimal

place):

Year

1

2

3

4

5

6

7

8

9

10

11

12

Forecast (000)

6.00

Year

1

2

3

4

5

6

7

8

9

10

11

Registrations (000)

5.00

5.00

5.00

4.00

10.00

7.00

6.00

10.00

11.00

12.00

15.00

Explanation / Answer

Year 2 = 0.4 * 6 + 0.6*6

= 6.0

Year 3 = 0.4 * 5 + 0.6* 6

= 5.6

Year 4 = 0.4*5 + 0.6*5.6

= 5.3

Year 5 = 0.4*4 + 0.6*5.3

= 4.8

Year 6 = 0.4*10 + 0.6*4.8

= 6.8

Year 7 = 0.4*7 + 0.6*6.8

= 6.8

Year 8 = 0.4*6 + 0.6*6.8

= 6.4

Year 9 = 0.4*10 + 0.6*6.4

= 7.8

Year 10 = 0.4*11 + 0.6*7.8

= 9.1

Year 11 = 0.4*12 + 0.6*9.1

= 10.2

Year 12 = 0.4*15 + 0.6*10.2

= 12.1

Year

Year

1 2 3 4 5 6 7 8 9 10 11 12 Forecast 6.0 6.0 5.6 5.3 4.8 6.8 6.8 6.4 7.8 9.1 10.2 12.1