Using just the wool prices and a smoothing constant w = 0.8, find the exponentially smoothed value for May.
A) 272.0
B) 275.0
C) 287.0
D) 276.9

Question

Quizplus · Accepted Answer

The exponentially smoothed value is calculated using the formula: S_t = w * X_t + (1 - w) * S_(t-1). Assuming the previous smoothed value (S_(t-1)) is given or can be calculated, apply the formula with w = 0.8 to find the smoothed value for May.

Using Just the Wool Prices and a Smoothing Constant W