It Is Now near the End of May and You

question 29

Multiple Choice

It is now near the end of May and you must prepare a forecast for June for a certain product. The forecast for May was 900 units. The actual demand for May was 1000 units. You are using the exponential smoothing method with a = 0.20. The forecast for June is

• A) less than 925 units.
• B) greater than or equal to 925 units but less than 950 units.
• C) greater than or equal to 950 units but less than 1000 units.
• D) greater than or equal to 1000 units.

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Definitions:

Sampling Distribution

The likelihood distribution of a particular statistic derived from a random sample, utilized to draw conclusions about the overall population.

Sample Size

The number of observations or data points selected from a population for analysis, which impacts the reliability and accuracy of statistical results.

Specification Limits

Predetermined boundaries set for the acceptable range of product dimensions, materials, or performance standards to ensure quality.

Capability Index

A statistical measure used to assess the ability of a process to produce output within specified limits.