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Average starting salaries for students using a placement service at a university have been steadily ...

Average starting salaries for students using a placement service at a university have been steadily increasing. A study of the last four graduating classes indicates the following average salaries: $30,000, $32,000, $34,500, and $36,000 (last graduating class). Predict the starting salary for the next graduating class using a simple exponential smoothing model with α = 0.25. Assume that the initial forecast was $30,000 (so that the forecast and the actual were the same).

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Quantitative Analysis for Management

Edition: 12^th

Authors: Render, Stair, Hanna, Hale

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