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The sale of cars in a shop for four years is given as 102, 98, 108, 115. The sales follow exponentially smoothening average method with a smoothing factor of 0.2. The number of sales in the subsequent month will be (approximately):
  • a)
    64
  • b)
    68
  • c)
    66
  • d)
    70
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
The sale of cars in a shop for four years is given as 102, 98, 108, 1...
Ft+1 = αDt + α(1 − α)Dt−1 + α(1 − α)2Dt−2+ α(1 − α)3Dt−3
= 0.2(115) + 0.2(1 − 0.2) × 108
+ 0.2(1 − 0.2)2 × 98
+ 0.2(1 − 0.2)3 × 102
= 63.26
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The sale of cars in a shop for four years is given as 102, 98, 108, 115. The sales follow exponentially smoothening average method with a smoothing factor of 0.2. The number of sales in the subsequent month will be (approximately):a) 64b) 68c) 66d) 70Correct answer is option 'A'. Can you explain this answer?
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