THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
The table below is the data set of the number of preorders received for a particular game on a weekly basis.
The forecaster uses the Holt-Winters Exponential Smoothing for nonseasonal series to forecast the number of preorders in future time periods.
He uses α = 0.8 and β = 0.5.(Hint: Use the formula from the text to arrive at the answers. )

-Which of the following weeks has an approximate trend estimate of 68?
A)week 5
B)week 7
C)week 1
D)week 11

Question

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
The table below is the data set of the number of preorders received for a particular game on a weekly basis.
The forecaster uses the Holt-Winters Exponential Smoothing for nonseasonal series to forecast the number of preorders in future time periods.
He uses α = 0.8 and β = 0.5.(Hint: Use the formula from the text to arrive at the answers. )
 
-Which of the following weeks has an approximate trend estimate of 68?
A)week 5 
B)week 7 
C)week 1 
D)week 11

Quizplus · Accepted Answer

To estimate the trend for a specific week, we use the formula: 
T_t = (1 - β) * (L_t - L_t-1) + β * T_t-1 
Using the formula for Week 7, we get: 
T_7 = (1 - 0.5) * (90 - 77) + 0.5 * 68 = 45.5 + 34 = 79.5 
So the approximate trend estimate for Week 7 is 68. Therefore, the answer is B.