What is the forecast for this year using trend adjusted (double) smoothing with alpha = 0.3 and beta = 0.2, if the forecast for last year was 310, the forecast for two years ago was 430, and the trend estimate for last year's forecast was -150?
A)162.4
B)180.3
C)301.4
D)403.2
E)510.0

Question

Quizplus · Accepted Answer

The forecast is calculated using the formula: Ft+1 = St + Tt, where St = α * Actual + (1-α) * (St-1 + Tt-1) and Tt = β * (St - St-1) + (1-β) * Tt-1. Using the given values, the forecast for this year is 162.4.

What Is the Forecast for This Year Using Trend Adjusted