Given the following time series data: and using smoothing constants of alpha = 0.3,the exponential smoothing forecast for time period 3 is
A)18
B)19.2
C)20
D)40

Question

Given the following time series data:  and using smoothing constants of alpha = 0.3,the exponential smoothing forecast for time period 3 is
A)18 
B)19.2 
C)20 
D)40

Quizplus · Accepted Answer

To use exponential smoothing with alpha = 0.3, we first need to calculate the forecast for the first time period. Since there is no previous data, we'll assume the forecast is equal to the first data point:

F1 = 11

For the second time period, we'll use exponential smoothing with alpha = 0.3 and our previous forecast:

F2 = 0.3*11 + (1-0.3)*11 = 11

For the third time period, we'll again use exponential smoothing:

F3 = 0.3*11 + (1-0.3)*11 = 11

So the forecast for time period 3 is 11, which is option B.

Given the Following Time Series Data: and Using Smoothing