What is this week's forecast using trend adjusted (double)smoothing with alpha(1)= 0.5 and alpha(2)= 0.1,if the forecast for last week was 65,the forecast for two weeks ago was 75,and the trend estimate for last week's forecast was -5?
A) 49
B) 50
C) 55
D) 65
E) 78

Question

Quizplus · Accepted Answer

Using trend adjusted (double) exponential smoothing with alpha(1)=0.5 and alpha(2)=0.1:

Level estimate for this week = alpha(1) * Actual value for this week + (1-alpha(1))[Level estimate for previous week + Trend estimate for previous week] 
= 0.5*65 + 0.5*(75-5) 
= 55

Therefore, the forecast for this week is 55.

What Is This Week's Forecast Using Trend Adjusted (Double)smoothing with Alpha(1)=