Use the Data Given Below to Answer the Following Question(s)

question 17

Multiple Choice

Use the data given below to answer the following question(s) .
The table provided below gives the sales details of the number of android smart phones at an electronic retail store for the past 6 weeks. The time series appears to be relatively stable, without trend, seasonal, or cyclical effects. (Hint: Optimize α value in 0.1 increments) $$\begin{array} { | c | c | } \hline \text { Week } & \text { Units sold } \\\hline 1 & 88 \\\hline 2 & 44 \\\hline 3 & 54 \\\hline 4 & 65 \\\hline 5 & 72 \\\hline 6 & 85 \\\hline\end{array}$$
-What is the formula used to calculate the value of bt in the linear trend equation Ft+k = at + btk while using double exponential smoothing?

• A) bt = ?(bt - bt-1) + (1 -?)bt-1
• B) bt = ?Ft-1 + (1 - ?)(at +1 + bt+1)
• C) bt = ?Ft + (1 - ?)(at -1 + bt-1)
• D) bt = ?(at - at-1) + (1 -?)bt-1

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Definitions:

Variable Expenses

Costs that vary directly and proportionately with the level of production activity or business volume.

Net Operating Income

The income derived from a firm's core business operations, indicating the financial health of the business's day-to-day activities.

Advertising Budget

The allocation of funds towards promotional activities intended to build brand awareness, increase product demand, or communicate information to consumers.

Monthly Sales

The total revenue generated from sales activities in one calendar month, often used to track business performance.