The Morgan Company is interested in developing a forecast for next month's sales.It has collected sales data for the past 12 months.
After analyzing these data,if the company wishes to use double exponential smoothing with alpha = 0.20 and beta = 0.20,the starting values for the constant process and the trend process can be derived from a linear trend regression model by using the intercept and slope coefficient respectively.

Question

The Morgan Company is interested in developing a forecast for next month's sales.It has collected sales data for the past 12 months.
  After analyzing these data,if the company wishes to use double exponential smoothing with alpha = 0.20 and beta = 0.20,the starting values for the constant process and the trend process can be derived from a linear trend regression model by using the intercept and slope coefficient respectively.

Quizplus · Accepted Answer

The statement is true. Double exponential smoothing involves using an initial constant level and trend value, which can be derived from a linear trend regression model. The intercept can be used for the constant level, and the slope coefficient can be used for the trend value. The smoothing parameters alpha and beta are then used to adjust and refine the forecast based on current and past data.

The Morgan Company Is Interested in Developing a Forecast for Next