As an example, we can use the same short time series we used to demonstrate how to

Question:

As an example, we can use the same short time series we used to demonstrate how to use moving averages, to create forecasts using Brown’s exponential smoothing method, as illustrated in Figure 9.32. To start the smoothing process the data analyst must make a choice for the smoothing constant α and the initial estimate of S’0. The value of S’0 is needed to determine the smoothed statistic for S’0.

B 1 Example 9.18 2 3 4 5 6 7 Si ayo+(1-a) So 8 9 10 11 Period 1 2 Figure 9.32 a= 3 4 5 C 0.3 Yi 150 250 200

Applying simple exponential smoothing In this example, we have chosen α = 0.3 and S′0 = y1=150.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Business Statistics Using Excel

ISBN: 9780199659517

2nd Edition

Authors: Glyn Davis, Branko Pecar

Question Posted: