SCENARIO 16-4
the Number of Cases of Merlot Wine Sold

question 128

Short Answer

SCENARIO 16-4
The number of cases of merlot wine sold by a Paso Robles winery in an 8-year period follows. $$\begin{array}{l}\text { Year Cases of Wine }\\\begin{array} { l l } 2005 & 270 \\2006 & 356 \\2007 & 398 \\2008 & 456 \\2009 & 358 \\2010 & 500 \\2011 & 410 \\2012 & 376\end{array}\end{array}$$
-Referring to Scenario 16-4, exponential smoothing with a weight or smoothing constant of
0.4 will be used to smooth the wine sales. The value of E5, the smoothed value for 2009 is
__________.

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Definitions:

Allocative Efficiency

A state of the economy in which resources are apportioned in a way that maximizes the overall benefit to society.

Productive Efficiency

A situation where an economy or a production entity cannot produce more of one good without sacrificing production of another good and by using the least costly production techniques.

Long-Run Adjustments

The process by which firms adjust their production levels, input mixes, and operations to reflect changes in the market or economic conditions over a longer period.

Allocative Efficiency

A state of the economy in which production represents consumer preferences; in other words, every good or service is produced up to the point where the last unit provides a utility level equal to the cost of producing it.