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:

Inertia

A state of inactivity or resistance to change in consumer behavior, often due to habit or perceived effort.

Compensatory Rule

A decision-making strategy where negative attributes can be compensated for by positive attributes.

Product Signal

An indicator or marker that conveys information about the qualities or characteristics of a product to consumers.

Simple Additive Decision Rule

A decision-making process in which options are evaluated by summing up the merits or scores of their attributes, simplifying the choice among multiple alternatives.