(Situation G) The number of industrial and construction failures in the United States by the type of firm for the years 1985-1996 is given in the table. $$\begin{array} { r r r r r r }
\hline \text { Year } & \text { Commercial } & \text { Manufacturing } & \begin{array} { r }
\text { Retail } \
\text { Trade }
\end{array} & \begin{array} { l }
\text { Wholesale } \
\text { Trade }
\end{array} \
\hline 1985 & 1637 & 2262 & 1645 & 4799 & 1089 \
1986 & 1331 & 1770 & 1360 & 4139 & 1028 \
1987 & 1041 & 1463 & 1122 & 3406 & 887 \
1988 & 773 & 1204 & 1013 & 2889 & 740 \
1989 & 930 & 1378 & 1165 & 3183 & 908 \
1990 & 1594 & 2355 & 1599 & 4910 & 1284 \
1991 & 2366 & 3614 & 2223 & 6882 & 1709 \
1992 & 3840 & 4872 & 3683 & 9730 & 2783 \
1993 & 8627 & 5247 & 4433 & 11,429 & 3598 \
1994 & 12,787 & 6936 & 5759 & 13,787 & 4882 \
1995 & 16,647 & 7004 & 5662 & 13,501 & 4835 \
1996 & 20,911 & 7035 & 5641 & 13,509 & 4808 \
\hline
\end{array}$$
-Using just the wholesale trade failures and a smoothing constant $\mathrm { w } = 0.7$ , calculate the exponentially smoothed value for 1988.
A) 1015.6
B) 798.4
C) 932.9
D) 845

Question

(Situation G) The number of industrial and construction failures in the United States by the type of firm for the years 1985-1996 is given in the table. $$\begin{array} { r r r r r r } 
\hline \text { Year } & \text { Commercial } & \text { Manufacturing } & \begin{array} { r } 
\text { Retail } \
\text { Trade }
\end{array} & \begin{array} { l } 
\text { Wholesale } \
\text { Trade }
\end{array} \
\hline 1985 & 1637 & 2262 & 1645 & 4799 & 1089 \
1986 & 1331 & 1770 & 1360 & 4139 & 1028 \
1987 & 1041 & 1463 & 1122 & 3406 & 887 \
1988 & 773 & 1204 & 1013 & 2889 & 740 \
1989 & 930 & 1378 & 1165 & 3183 & 908 \
1990 & 1594 & 2355 & 1599 & 4910 & 1284 \
1991 & 2366 & 3614 & 2223 & 6882 & 1709 \
1992 & 3840 & 4872 & 3683 & 9730 & 2783 \
1993 & 8627 & 5247 & 4433 & 11,429 & 3598 \
1994 & 12,787 & 6936 & 5759 & 13,787 & 4882 \
1995 & 16,647 & 7004 & 5662 & 13,501 & 4835 \
1996 & 20,911 & 7035 & 5641 & 13,509 & 4808 \
\hline
\end{array}$$
-Using just the wholesale trade failures and a smoothing constant $\mathrm { w } = 0.7$ , calculate the exponentially smoothed value for 1988.
A) 1015.6
B) 798.4
C) 932.9
D) 845

Quizplus · Accepted Answer

The exponentially smoothed value for 1988 is calculated using the formula: $ S_t = w \times X_t + (1 - w) \times S_{t-1} $. For 1988, $ S_{1988} = 0.7 \times 740 + 0.3 \times 887 = 798.4 $.

(Situation G) the Number of Industrial and Construction Failures in the United