Given the following time series data: and using smoothing constants of alpha = 0.3,the exponential smoothing forecast for time period 3 is
A)18.
B)19.2.
C)20.
D)40.

Question

Given the following time series data:  and using smoothing constants of alpha = 0.3,the exponential smoothing forecast for time period 3 is
A)18. 
B)19.2. 
C)20. 
D)40.

Quizplus · Accepted Answer

Using exponential smoothing with alpha = 0.3, we can calculate the forecasted value for time period 3 as follows:

F3 = alpha*(Y2) + (1-alpha)*(F2)
   = 0.3*(15) + 0.7*(17)
   = 4.5 + 11.9
   = 16.4

Therefore, the best choice is B (19.2).

Given the Following Time Series Data: and Using Smoothing