Consider the following time series data.Suppose that you use exponential smoothing with an alpha of 0.7 to fit a forecasting model.The forecast for period 7 is
$$\begin{array} { | c | c | c | }
\hline \text { Period } & \text { Forecast } & \text { Actual value } \
\hline \text { Period 1 } & 10 & 10 \
\hline \text { Period 2 } & 10 & 11 \
\hline \text { Period 3 } & 10.7 & 9 \
\hline \text { Period 4 } & 9.51 & 12 \
\hline \text { Period 5 } & 11.253 & 13 \
\hline \text { Period 6 } & 12.476 & 11 \
\hline
\end{array}$$
A)10.443
B)12
C)9)443
D)12.443
E)11.443

Question

Consider the following time series data.Suppose that you use exponential smoothing with an alpha of 0.7 to fit a forecasting model.The forecast for period 7 is
$$\begin{array} { | c | c | c | } 
\hline \text { Period } & \text { Forecast } & \text { Actual value } \
\hline \text { Period 1 } & 10 & 10 \
\hline \text { Period 2 } & 10 & 11 \
\hline \text { Period 3 } & 10.7 & 9 \
\hline \text { Period 4 } & 9.51 & 12 \
\hline \text { Period 5 } & 11.253 & 13 \
\hline \text { Period 6 } & 12.476 & 11 \
\hline
\end{array}$$
A)10.443
B)12
C)9)443
D)12.443
E)11.443

Quizplus · Accepted Answer

The forecast for period 7 is calculated using the formula: $ F_{t+1} = \alpha \times A_t + (1-\alpha) \times F_t $. For period 6, $ F_6 = 12.476 $ and $ A_6 = 11 $. Thus, $ F_7 = 0.7 \times 11 + 0.3 \times 12.476 = 11.443 $.

Consider the Following Time Series Data A)10443 B)12 C)9)443 D)12

Consider the Following Time Series Data A)10443
B)12
C)9)443
D)12