A Company Wants to Generate a Forecast for Unit Demand

question 45

Multiple Choice

A company wants to generate a forecast for unit demand for year 2012 using exponential smoothing.The actual demand in year 2011 was 120.The forecast demand in year 2011 was 110.Using this data and a smoothing constant alpha of 0.1, which of the following is the resulting year 2012 forecast value?

• A)100
• B)110
• C)111
• D)114
• E)120

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Definitions:

Discretionary Responsibilities

Obligations that an individual or organization chooses to undertake voluntarily, beyond what is legally or contractually required.

Demand Legitimacy

The validity and legitimacy of a stakeholder’s interest in the organization.

Stakeholder's Concerns

The issues or interests that stakeholders (individuals or groups affected by or with an interest in a company's operations) have in the actions and performance of an organization.

Corporate Governance

The system of rules, practices, and processes by which a company is directed and controlled, focusing on balancing the interests of stakeholders.