The Wilson Company Is Interested in Forecasting Demand for Its

question 49

Multiple Choice

The Wilson Company is interested in forecasting demand for its XG-667 product for quarter 13 based on 12 quarters of data. The following shows the data and the double exponential smoothing model results for periods 1-12 using alpha = 0.20 and beta = 0.40. Based on this information, which of the following statements is true?

• A) If beta is changed to 0.20 and alpha remains at 0.20, the MAD for periods 2-12 is reduced.
• B) If beta is changed to 0.20 and alpha remains at 0.20, the forecast for period 13 is slightly reduced.
• C) The forecast bias for periods 2-12 is approximately 6.18.
• D) All of the above are true.

---

Definitions:

Waiting Time

The time that elapses from a point of request until the commencement of a service or response.

Unemployment Rate

The percentage of the labor force that is jobless and actively looking for employment.

Margin of Error

An expression of the amount of random sampling error in a survey's results, representing how much the results might differ from the true population value.

Amazon Prime Members

Individuals subscribed to Amazon's membership program, offering benefits like free shipping, streaming, and exclusive deals.