Suppose That a Simple Exponential Smoothing Model Is Used (With

question 49

Multiple Choice

Suppose that a simple exponential smoothing model is used (with α = 0.30) to forecast monthly sandwich sales at a local sandwich shop.After June's demand is observed at 1520 sandwiches,the forecasted demand for July is 1600 sandwiches.At the beginning of July,what would be the forecasted demand for August?

• A)1520
• B)1544
• C)1550
• D)1600

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Definitions:

Pumpkins

A large, round, orange fruit with a thick rind, typically harvested in the fall and used both for food (such as in pies) and as decoration (such as jack-o'-lanterns).

Constant Marginal Cost

A situation in which the cost to produce one additional unit of output remains unchanged, regardless of the level of production.

Demand for Wine

The quantity of wine that consumers are willing to purchase at various prices, reflecting the relationship between price and quantity demanded in the wine market.

Cournot Duopolists

Firms in a duopoly (a market dominated by two firms) that determine their output levels simultaneously, under the assumption that the other will not change theirs.