The Business Analyst for Video Sales, Inc What Is the Forecast for This Year Using Exponential Smoothing

Multiple Choice

The business analyst for Video Sales, Inc. wants to forecast this year's demand for DVD decoders based on the following historical data: $$\begin{array} { l l } \text { Year } & \text { Demand } \\\hline \text { 5 years ago } & 900 \\\text { 4 years ago } & 700 \\\text { 3 years ago } & 600 \\\text { 2 years ago } & 500 \\\text { Last year } & 300\end{array}$$ What is the forecast for this year using exponential smoothing with alpha = .4, if the forecast for two years ago was 750?

A) 163
B) 180
C) 300
D) 420
E) 510