TABLE 16-3
The following table contains the number of complaints received in a department store for the first 6 months of last year.

-Referring to Table 16-3, if this series is smoothed using exponential smoothing with a smoothing constant of 1/3, what would be the second value?
A) 39
B) 42
C) 45
D) 53

Question

TABLE 16-3
The following table contains the number of complaints received in a department store for the first 6 months of last year.
 
-Referring to Table 16-3, if this series is smoothed using exponential smoothing with a smoothing constant of 1/3, what would be the second value?
A) 39 
B) 42 
C) 45 
D) 53

Quizplus · Accepted Answer

The second value would be 39. Exponential smoothing is a weighted average of past values, with the most recent value given the most weight. The smoothing constant determines how much weight is given to the most recent value. A smoothing constant of 1/3 means that the most recent value is given a weight of 1/3, and the previous value is given a weight of 2/3. So, the second value would be (1/3)(53) + (2/3)(39) = 39.

TABLE 16-3 the Following Table Contains the Number of Complaints Received in Received