Answer:
22650
Step-by-step explanation:
Assume the forecast for last year was 21,000 and the forecast for two years ago was 19,000, and that the trend estimate for last years forecast was 1,500.
a)18,750
b)19,500
c)21,000
d)22,650
e)22,800
Forecasting is a technique that uses historical data as inputs to make calculated estimates that are predictive in predicting the direction of economic trends.
Average of difference in alpha is (0.5-0.3)/2=0.1
trend estimate 1500
for this year
yt=21000+1500+0.1*1500
yt=22650
Answer:
i. the forecast for this year using alpha = 0.5 is 11250
ii. using alpha = 0.3 is 7350
Step-by-step explanation:
using exponential smoothing,the formula is given as: F(t+1) =αAt + (1-α)Ft, where F(t+1) is the new forecast or required forecast, α is the alpha, At is the each date or observation and Ft is the current trend.
i. using alpha= 0.5, the year forecast = (0.5 x 21000) + (1-0.5) x 1500 = 11250
ii. using alpha = 0.3,the year forecast = (0.3 x 21000) + (1-0.3) x 1500 = 7350.
this year forecast using alpha = 0.5 and 0.3 are 11250 and 7350 respectively
