You are using exponential smoothing on an annual time series concerning total revenues (in $millions). You decide

Question:

You are using exponential smoothing on an annual time series concerning total revenues (in $millions). You decide to use a smoothing coefficient of W = 0.20, and the exponentially smoothed value for 2013 is E2013 = (0.20) (12.1) + (0.80) (9.4).
a. What is the smoothed value of this series in 2013?
b. What is the smoothed value of this series in 2014 if the value of the series in that year is $11.5 million?