THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
The table below is the data set of the Shiller Real Home Price Index for the years 1894-1904.
Use a smoothing constant of α = 0.8 to determine the forecasts using simple exponential smoothing.

-The year ________ has the forecast value 104.95.
A)1885
B)1899
C)1895
D)1991

Question

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
The table below is the data set of the Shiller Real Home Price Index for the years 1894-1904.
Use a smoothing constant of α = 0.8 to determine the forecasts using simple exponential smoothing.
 
-The year ________ has the forecast value 104.95.
A)1885 
B)1899 
C)1895 
D)1991

Quizplus · Accepted Answer

According to the table, the data set covers the years 1894-1904. Therefore, the year 1899 is the only option within that time frame. Using simple exponential smoothing with a smoothing constant of α = 0.8, the forecast value for the Shiller Real Home Price Index in 1899 is 104.95.