A Management Analyst Is Using Exponential Smoothing to Predict Merchandise

question 84

Essay

A management analyst is using exponential smoothing to predict merchandise returns at an upscale branch of a department store chain. Given an actual number of returns of 154 items in the most recent period completed, a forecast of 172 items for that period, and a smoothing constant of 0.3, what is the forecast for the next period? How would the forecast be changed if the smoothing constant were 0.6? Explain the difference in terms of alpha and responsiveness.

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Definitions:

Anorexia Nervosa

An eating disorder characterized by the pursuit of thinness to dangerously low weight levels.

DSM-5

The Diagnostic and Statistical Manual of Mental Disorders, Fifth Edition, which is the standard classification of mental disorders used by mental health professionals in the United States.

Energy Intake

The amount of energy derived from foods and beverages consumed, measured in calories or joules.

Inappropriate Compensatory

Behaviors undertaken to undo or compensate for an undesirable action or thought, which may be maladaptive or harmful.