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

Question 2

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.The value of k is set at 3.(Hint: Optimize α value.)
 Week  Units sold 188244354465572685\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 = β(bt - bt₋₁) + (1 -β) bt₋₁
B) bt = αFt₋₁ + (1 - α) (at ₊₁ + bt₊₁)
C) bt = αFt + (1 - α) (at ₋₁ + bt₋₁)
D) bt = β(at - at₋₁) + (1 -β) bt₋₁

Correct Answer:

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