Question: You are using Holt's exponential smoothing method with smoothing constants 0.1 (for level) and 0.3 (for trend) to forecast weekly revenues from cosmetic products at
You are using Holt's exponential smoothing method with smoothing constants 0.1 (for level) and 0.3 (for trend) to forecast weekly revenues from cosmetic products at a local drug store. Just prior to week 1, the level is estimated to be $3,670, and the trend is estimated to be $75. Then during week 1, actual revenue is $3,780. After observing this value, which of the following are closest to the forecasts for the next three weeks?
a. Week 2: $3,906; week 3: $3,975; week 4: $4,045
b. Week 2: $3,861; week 3: $3,945; week 4: $4,030
c. Week 2: $3,824; week 3: $3,901; week 4: $3,977
d. Week 2: $3,874; week 3: $3,971; week 4: $4,068
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