Use the data given below to answer the following question(s).
The table provided below gives the sales details of the number of android smart phones at an electronic retail store for the past 6 weeks. The time series appears to be relatively stable, without trend, seasonal, or cyclical effects. (Hint: Optimize α value in 0.1 increments) $$\begin{array} { | c | c | }
\hline \text { Week } & \text { Units sold } \
\hline 1 & 88 \
\hline 2 & 44 \
\hline 3 & 54 \
\hline 4 & 65 \
\hline 5 & 72 \
\hline 6 & 85 \
\hline
\end{array}$$
-What is the formula used to calculate the value of at in the linear trend equation Ft+k = at + btk while using double exponential smoothing?
A) at = ?(bt - bt-1) + (1 -?)bt-1
B) at = ?Ft-1 + (1 - ?)(at +1 + bt+1)
C) at = ?Ft + (1 - ?)(at -1 + bt-1)
D) at = ?(bt + bt-1) + (1 + ?)bt-1

Question

Use the data given below to answer the following question(s).
The table provided below gives the sales details of the number of android smart phones at an electronic retail store for the past 6 weeks. The time series appears to be relatively stable, without trend, seasonal, or cyclical effects. (Hint: Optimize α value in 0.1 increments) $$\begin{array} { | c | c | } 
\hline \text { Week } & \text { Units sold } \
\hline 1 & 88 \
\hline 2 & 44 \
\hline 3 & 54 \
\hline 4 & 65 \
\hline 5 & 72 \
\hline 6 & 85 \
\hline
\end{array}$$
-What is the formula used to calculate the value of at in the linear trend equation Ft+k = at + btk while using double exponential smoothing?
A) at = ?(bt - bt-1) + (1 -?)bt-1
B) at = ?Ft-1 + (1 - ?)(at +1 + bt+1)
C) at = ?Ft + (1 - ?)(at -1 + bt-1)
D) at = ?(bt + bt-1) + (1 + ?)bt-1

Quizplus · Accepted Answer

The formula for calculating the level component (at) in double exponential smoothing is at = αFt + (1 - α)(at-1 + bt-1), where Ft is the actual value, at-1 is the previous level, and bt-1 is the previous trend.

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