A Management Analyst Is Using Exponential Smoothing to Predict Merchandise

question 84

Essay

A management analyst is using exponential smoothing to predict merchandise returns at an upscale branch of a department store chain. Given an actual number of returns of 154 items in the most recent period completed, a forecast of 172 items for that period, and a smoothing constant of 0.3, what is the forecast for the next period? How would the forecast be changed if the smoothing constant were 0.6? Explain the difference in terms of alpha and responsiveness.

---

Definitions:

Adhesive Capsulitis

A condition also known as "frozen shoulder," characterized by stiffness and pain in the shoulder joint.

Joint Effusion

The presence of increased fluid within a joint capsule, often leading to swelling, pain, and reduced mobility.

Rheumatoid Arthritis

A chronic inflammatory disorder affecting joints, including those in the hands and feet, leading to painful swelling and potential joint deformity.

Osteoarthritis

A degenerative joint disease causing cartilage breakdown in joints, leading to pain, swelling, and reduced motion in affected areas.