(Situation J) The table lists the number (in millions) of Chevrolet passenger cars sold to dealers in the U.S. and Canada from 1980 to 1985. $$\begin{array} { l l }
\hline \text { Year } & \text { Sales } \
\hline 1980 & 1.740 \
1981 & 1.444 \
1982 & 0.896 \
1983 & 1.289 \
1984 & 1.455 \
1985 & 4.882 \
\hline
\end{array}$$
-Using the exponential smoothing technique to the data from 1980 to 1985, forecast the number of Chevrolet passenger cars to be sold to U.S. and Canadian dealers in 1986 using $w = 0.7$
A) 4.882 million cars
B) 3.427 million cars
C) 3.834 million cars
D) 2.448 million cars

Question

(Situation J) The table lists the number (in millions) of Chevrolet passenger cars sold to dealers in the U.S. and Canada from 1980 to 1985. $$\begin{array} { l l } 
\hline \text { Year } & \text { Sales } \
\hline 1980 & 1.740 \
1981 & 1.444 \
1982 & 0.896 \
1983 & 1.289 \
1984 & 1.455 \
1985 & 4.882 \
\hline
\end{array}$$
-Using the exponential smoothing technique to the data from 1980 to 1985, forecast the number of Chevrolet passenger cars to be sold to U.S. and Canadian dealers in 1986 using $w = 0.7$
A) 4.882 million cars
B) 3.427 million cars
C) 3.834 million cars
D) 2.448 million cars

Quizplus · Accepted Answer

Exponential smoothing forecast for 1986 is calculated using the formula: $ F_{t+1} = w \times A_t + (1-w) \times F_t $. Starting with the first actual sales as the initial forecast, the calculation proceeds year by year, applying the weight $ w = 0.7 $. The final forecast for 1986 is approximately 3.834 million cars.

(Situation J) the Table Lists the Number (In Millions) of Chevrolet