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:

Integrative Medicine

A holistic approach to care that combines conventional medical treatments with alternative therapies to treat the whole person, not just the disease.

Nutritional Supplements

Products intended to supplement the diet and provide nutrients, such as vitamins, minerals, fiber, fatty acids, or amino acids, that may be missing or may not be consumed in sufficient quantities in a person's diet.

Chemotherapy

A type of cancer treatment using drugs to destroy cancer cells by impeding their growth and reproduction.

Cultural Context

The societal norms, values, beliefs, and practices that shape and influence an individual's behaviors, interpretations, and interactions within their community.