A time series is shown below.Perform single exponential smoothing for this data set using α = 0.2 What is the value of the forecast for period 6?
A)40
B)36
C)31.5
D)33.2

Question

A time series is shown below.Perform single exponential smoothing for this data set using α = 0.2  What is the value of the forecast for period 6?
A)40 
B)36 
C)31.5 
D)33.2

Quizplus · Accepted Answer

Using single exponential smoothing with α = 0.2, we have:
F1= 45
F2= 0.2(60) + 0.8(45) = 47
F3= 0.2(50) + 0.8(47) = 47.4
F4= 0.2(55) + 0.8(47.4) = 49.08
F5= 0.2(40) + 0.8(49.08) = 44.66
F6= 0.2(35) + 0.8(44.66) = 31.5

Therefore the value of the forecast for period 6 is 31.5.

The best choice is C only.

A Time Series Is Shown Below