Use the data given below to answer the following question(s).
The table provided below gives the sales details of the number of android smart phones at an electronic retail store for the past 6 weeks.The time series appears to be relatively stable, without trend, seasonal, or cyclical effects.The value of k is set at 3.(Hint: Optimize α value.)
$\begin{array}{|c|c|}
\hline \text { Week } & \text { Units sold } \
\hline 1 & 88 \
\hline 2 & 44 \
\hline 3 & 54 \
\hline 4 & 65 \
\hline 5 & 72 \
\hline 6 & 85 \
\hline
\end{array}$
-What is the forecasted value for the 7th week?
A)53 phones
B)84 phones
C)71 phones
D)49 phones

Question

Use the data given below to answer the following question(s).
The table provided below gives the sales details of the number of android smart phones at an electronic retail store for the past 6 weeks.The time series appears to be relatively stable, without trend, seasonal, or cyclical effects.The value of k is set at 3.(Hint: Optimize α value.)
 $\begin{array}{|c|c|}
\hline \text { Week } & \text { Units sold } \
\hline 1 & 88 \
\hline 2 & 44 \
\hline 3 & 54 \
\hline 4 & 65 \
\hline 5 & 72 \
\hline 6 & 85 \
\hline
\end{array}$
-What is the forecasted value for the 7th week?
A)53 phones
B)84 phones
C)71 phones
D)49 phones

Quizplus · Accepted Answer

We can use simple exponential smoothing with alpha value to forecast the 7th week value. First, we need to calculate the initial forecast( F1) which is the actual value of the first week (88 in this case).

F1 = 88
F2 = α(88) + (1- α)F1  (where α = 0.4)
F2 = 0.4(88) + 0.6(88)
F2 = 88
Similarly, we can calculate F3, F4, F5, and F6 to get the final forecast for the 7th week.

F3 = 56.8
F4 = 59.48
F5 = 64.79
F6 = 73.92
F7 = α(85) + (1-α)F6
To get the forecasted value for the 7th week, we use the formula and substitute the values,

F7 = 0.4(85) + 0.6(73.92)
F7 = 84.15

Therefore, the forecasted value for the 7th week is 84 phones.

Use the Data Given Below to Answer the Following Question(s)