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

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Mathematics Questions!