In exponential smoothing with trend,the forecast consists of:
A)an exponentially smoothed forecast and a smoothed trend factor
B)the old forecast adjusted by a trend factor
C)the old forecast and a smoothed trend factor
D)a moving-average and a trend factor
E)None of the above

Question

In exponential smoothing with trend,the forecast consists of:
A)an exponentially smoothed forecast and a smoothed trend factor 
B)the old forecast adjusted by a trend factor 
C)the old forecast and a smoothed trend factor 
D)a moving-average and a trend factor 
E)None of the above

Quizplus · Accepted Answer

Exponential smoothing with trend involves generating an exponentially smoothed forecast and a smoothed trend factor to account for any linear trend present in the data. Therefore, option A is the correct answer. Option B is incorrect as it only adjusts the old forecast by a trend factor, while option C is partially correct but does not involve exponential smoothing. Option D is also incorrect as it involves a different forecasting method (moving averages) instead of exponential smoothing.

In Exponential Smoothing with Trend,the Forecast Consists Of