Suppose That the Demand in Period 1 Was 7 Units

question 1

Multiple Choice

Suppose that the demand in period 1 was 7 units and the demand in period 2 was 9 units. Assume that the forecast for period 1 was for 5 units. If the firm uses exponential smoothing with an alpha value of .20, what should be the forecast for period 3? (Round answers to two decimal places.)

• A) 9.00
• B) 3.72
• C) 9.48
• D) 5.00
• E) 6.12

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Definitions:

Tested

The process of examining or evaluating something to determine its characteristics, quality, or performance.

Set Up

The process or action of making something operational or ready for use, especially in a context of preparation or installation.

Production Possibilities Frontier

A curve depicting all maximum output possibilities for two goods, given a set of inputs and production technology.

Peanuts

Peanuts are a type of legume or groundnut that is cultivated for its edible seeds, widely consumed globally as a snack, in culinary dishes, or processed into oil and other food products.