Use the data given below to answer the following question(s).
The table below shows the car sales from the year 2002-2007.The forecaster assumes a smoothing constant of 0.8 and uses the exponential smoothing model to determine the forecast for the future.
-From the data given above,the forecast for the year 2005 (in 000s)is ________.
A)39.60 units
B)40.72 units
C)47.34 units
D)52.67 units

Question

Use the data given below to answer the following question(s).
The table below shows the car sales from the year 2002-2007.The forecaster assumes a smoothing constant of 0.8 and uses the exponential smoothing model to determine the forecast for the future. 
-From the data given above,the forecast for the year 2005 (in 000s)is ________.
A)39.60 units 
B)40.72 units 
C)47.34 units 
D)52.67 units

Quizplus · Accepted Answer

To calculate the forecast for the year 2005, we can use the exponential smoothing model:
Forecast for 2005 = Smoothing constant * (Actual sales for 2004) + (1 - Smoothing constant) * (Forecast for 2004)
= 0.8 * 50.75 + 0.2 * 45.54
= 40.72 thousand units. 
Therefore, the forecast for the year 2005 (in 000s) is 40.72 units. Hence, the correct answer is option B.

Use the Data Given Below to Answer the Following Question(s)