THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
The table below shows the quarterly sales of Dragon Ball Z action figures in a toy store.The forecaster uses the double exponential smoothing model to determine the forecast for future periods.
Given: α = 0.7 and β = 0.3

-What is the approximate sales forecast (in 000's) for the 3^rd quarter of year 8?

Question

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
The table below shows the quarterly sales of Dragon Ball Z action figures in a toy store.The forecaster uses the double exponential smoothing model to determine the forecast for future periods.
Given: α = 0.7 and β = 0.3

-What is the approximate sales forecast (in 000's) for the 3^rd quarter of year 8?

Quizplus · Accepted Answer

Using the double exponential smoothing model:

Forecast for Q3 Y8 = (α x actual Q3 Y8) + [(1-α) x (last period's forecast + last period's trend)]
= (0.7 x 170) + (0.3 x (150 + 10)) = 119 + 9 = 128 (000's)

Therefore, the approximate sales forecast for the 3rd quarter of year 8 is 128, which is closest to option D (196 units).