Time-Series Forecasting with Exponential Smoothing Uses the Following Formula:` $S _ { t } = w y _ { t } + ( 1 - w ) S _ { t - 1 }$

question 56

Multiple Choice

Time-series forecasting with exponential smoothing uses the following formula:` $S _ { t } = w y _ { t } + ( 1 - w ) S _ { t - 1 }$ . where $S _ { t }$ is the exponentially smoothed time series at time t, $y _ { t }$ is the value of the time series at time t, and w is the smoothing constant. The forecast value at time t + 1, where w = 0.3, is given by:

• A) F_t+1 = 0.3y_t+1 + 0.7S_t+1.
• B) F_t+1 = 0.3y_t + 0.7S_t-1.
• C) F_t+1 = 0.3y_t + 0.7S_t.
• D) F_t+1 = 0.3y_t-1 + 0.7S_t.

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Definitions:

Processing Departments

Divisions within a manufacturing facility where specific processes are performed on products in their production stages.

Process Cost System

A cost accounting system used to apply costs to similar products that are produced in a continuous fashion.

Identical Units

Units of product that are uniform in nature and interchangeable with each other in the manufacturing process.

Continuous Basis

Operations or processes that are carried out without interruption, constantly over time.