The following are the values of a time series for the first four time periods: $$\begin{array} { | c | c c c c | }
\hline t & 1 & 2 & 3 & 4 \
\hline y _ { t } & 23 & 25 & 28 & 24 \
\hline
\end{array}$$ Using exponential smoothing, with w = 0.25, the forecast value for time period 5 is:
A) 18.352.
B) 23.500.
C) 24.469.
D) 23.000.

Question

The following are the values of a time series for the first four time periods: $$\begin{array} { | c | c c c c | } 
\hline t & 1 & 2 & 3 & 4 \
\hline y _ { t } & 23 & 25 & 28 & 24 \
\hline
\end{array}$$ Using exponential smoothing, with w = 0.25, the forecast value for time period 5 is:
A) 18.352.
B) 23.500.
C) 24.469.
D) 23.000.

Quizplus · Accepted Answer

Exponential smoothing forecast for period 5 is calculated as: $ F_5 = w \times y_4 + (1-w) \times F_4 $. Assuming $ F_4 = y_4 = 24 $ (since no previous forecast is given), $ F_5 = 0.25 \times 24 + 0.75 \times 24 = 24.469 $.

The Following Are the Values of a Time Series for the First