Suppose That a Simple Exponential Smoothing Model Is Used (With

question 106

Multiple Choice

Suppose that a simple exponential smoothing model is used (with a = 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:

Predictability

The ability to accurately forecast future events or behaviors based on patterns or prior knowledge.

Rescorla And Wagner

Psychologists who developed a model explaining how the strength of a stimulus-response association is determined in classical conditioning.

Instinctive Drift

The tendency of learned behavior to gradually revert to biologically predisposed patterns.

Biologically Predisposed

Being biologically predisposed means having an increased likelihood of developing certain characteristics, behaviors, or diseases due to genetic factors.