The Wilson Company is interested in forecasting demand for its XG-667 product for quarter 13 based on 12 quarters of data.The following shows the data and the double exponential smoothing model results for periods 1-12 using alpha = 0.20 and beta = 0.40. Based on this information,which of the following is the forecast for period 13?
A)About 1,345
B)Just under 1,300
C)Approximately 1,174
D)Nearly 1,225

Question

The Wilson Company is interested in forecasting demand for its XG-667 product for quarter 13 based on 12 quarters of data.The following shows the data and the double exponential smoothing model results for periods 1-12 using alpha = 0.20 and beta = 0.40.  Based on this information,which of the following is the forecast for period 13?
A)About 1,345 
B)Just under 1,300 
C)Approximately 1,174 
D)Nearly 1,225

Quizplus · Accepted Answer

Looking at the graph given, we can see that the forecasted value for period 13 is around 1,174. This is where the orange line intersects with the green dotted line on the graph. Therefore, the answer is option C - Approximately 1,174.

The Wilson Company Is Interested in Forecasting Demand for Its