Prior to conducting double exponential smoothing a simple linear regression is conducted and the trend equation is = 42 + 38.3t, so the smoothed constant process value should be C0 = 38.3 and the smoothed trend value should be T0 = 42.

Question

Quizplus · Accepted Answer

In double exponential smoothing, the constants for the smoothed process value (C0) and the smoothed trend value (T0) are not directly derived from the coefficients of a simple linear regression equation. Instead, they are initialized based on the data or set through optimization. The coefficients from a linear regression (42 and 38.3 in this case) represent the intercept and slope of the trend line, respectively, and do not directly correspond to the initial constants for double exponential smoothing.

Prior to Conducting Double Exponential Smoothing a Simple Linear Regression