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

-Determine the sales forecast (in 000's) for the 4^th quarter of year 10.

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

-Determine the sales forecast (in 000's) for the 4^th quarter of year 10.

Quizplus · Accepted Answer

Using the double exponential smoothing model, the forecast for the next period (Q4, yr 10) is equal to the sum of the forecast for the current period (Q3, yr 10) and the trend forecast for the current period. The level forecast for Q3 is 102, and the trend forecast for Q3 is 13, so the forecast for Q4 is 102 + 13 = 115.8. Rounded to the nearest thousand, this gives a forecast of 131 units.