Given a Prior Forecast Demand Value of 1,100, a Related

question 23

Multiple Choice

Given a prior forecast demand value of 1,100, a related actual demand value of 1,000, and a smoothing constant alpha of 0.3, what is the exponential smoothing forecast value?

• A) 1,000
• B) 1,030
• C) 1,070
• D) 1,130
• E) 970

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Definitions:

Franchisor

The party in franchising that owns the overarching company, trademarks, and products or services being offered, which grants the right for a franchisee to operate under the business's name.

Franchisee

A party that acquires the rights to use a company's trademark and business model to conduct business under that name.

Royalty Fees

Periodic payments made by a franchisee to the franchisor, typically based on a percentage of the franchisee's sales revenue.

Gross Profits

The total revenue from sales minus the cost of goods sold, before deducting operating expenses.