A Recently Introduced Product Has a Positive Trend in Sales

question 111

Short Answer

A recently introduced product has a positive trend in sales. The product's sales have increased in each of its first eight weeks on the market. The forecast for week 6 was 1,325 with A6 = 1,283 and T6 = 42. Using smoothing components α= 0.2 and β= 0.3, develop forecasts for weeks 7 and 8.
$$\begin{array} { | c | c | } \hline \text { Week } & \text { Demand } \\\hline 1 & 1,000 \\\hline 2 & 1,050 \\\hline 3 & 1,125 \\\hline 4 & 1,150 \\\hline 5 & 1,250 \\\hline 6 & 1,300 \\\hline 7 & 1,310 \\\hline 8 & 1,400 \\\hline\end{array}$$

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Definitions:

Conditioned Stimulus

A formerly neutral signal that, after consistent association with an unconditioned stimulus, triggers a learned response.

Unconditioned Stimulus

In classical conditioning, a stimulus that naturally and automatically triggers a response without prior conditioning.

Conditioned Response

An automatic response established by training to an ordinarily neutral stimulus after association with an unconditioned stimulus.

Unconditioned Response

A natural, automatic reaction to a stimulus that occurs without the need for learning or conditioning.