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

-Compute the sales forecast (in 000's) for the 2^nd 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

-Compute the sales forecast (in 000's) for the 2^nd quarter of year 10.

Quizplus · Accepted Answer

Using the double exponential smoothing model with α = 0.7 and β = 0.3, we first calculate the smoothed values: S1 = 18 S2 = 24.4 S3 = 33.12 S4 = 40.336 T1 = 6.4 T2 = 5.68 T3 = 4.876 Then, we can use the following formula to calculate the forecast for the 2nd quarter of year 10: Ft+1 = St + (t+1)Tt Plugging in t+1 = 5 and using the smoothed values from above, we get: F6 = 40.336 + (5+1)*4.876 F6 = 68.88 (in 000's) Therefore, the sales forecast for the 2^nd quarter of year 10 is approximately 146 units (in 000's).