As a Consultant, You Have Been Asked to Generate a Unit

question 24

Multiple Choice

As a consultant, you have been asked to generate a unit demand forecast for a product for year 2020 using exponential smoothing. The actual demand in year 2019 was 750. The forecast demand in year 2019 was 960. Using these data and a smoothing constant alpha of 0.3, which of the following is the resulting year 2020 forecast value?

• A) 766
• B) 813
• C) 897
• D) 1,023
• E) 1,120

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Definitions:

Liabilities

Financial obligations or debts that a company owes to external parties.

Assets

Assets that a company possesses or has rights to, which are anticipated to bring in economic gains or advantages in the future.

Operating Cycle

The period it takes for a business to buy inventory, sell products or services, and collect cash from sales.

Current Liability

Financial obligations that are due to be paid within one year or within the normal operating cycle of a business.