The president of State University wants to forecast student enrollment for this academic year based on the following historical data:
Year :Enrollments
5 years ago :15,000
4 years ago :16,000
3 years ago :18,000
2 years ago :20,000
Last year :21,000
-What is the forecast for this year using exponential smoothing with trend if $\alpha$ = 0 5 and $\beta$ = 0 3? Assume the forecast for last year was 21,000 and the forecast for two years ago was 19,000,and that the trend estimate for last years forecast was 1,500
A)18,750
B)19,500
C)21,000
D)22,650
E)22,800

Question

The president of State University wants to forecast student enrollment for this academic year based on the following historical data:
Year :Enrollments
5 years ago :15,000
4 years ago :16,000
3 years ago :18,000
2 years ago :20,000
Last year :21,000
-What is the forecast for this year using exponential smoothing with trend if $\alpha$ = 0 5 and $\beta$ = 0 3? Assume the forecast for last year was 21,000 and the forecast for two years ago was 19,000,and that the trend estimate for last years forecast was 1,500 
A)18,750 
B)19,500 
C)21,000 
D)22,650 
E)22,800

Quizplus · Accepted Answer

The forecast for this year using exponential smoothing with trend is calculated using the formula: $ F_t = S_{t-1} + T_{t-1} $, where $ S_t = \alpha \times A_{t-1} + (1-\alpha) \times (S_{t-1} + T_{t-1}) $ and $ T_t = \beta \times (S_t - S_{t-1}) + (1-\beta) \times T_{t-1} $. Using the given values, the forecast for this year is 22,650.

The President of State University Wants to Forecast Student Enrollment α\alphaα

The President of State University Wants to Forecast Student Enrollment $\alpha$