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.

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Definitions:

Intervenes

The act of becoming involved in a situation to alter the outcome or to assist in resolving issues or conflicts.

Logs

Records of events, transactions, or observations kept systematically for the purpose of tracking or analyzing information.

Diaries

are personal records where individuals jot down their daily experiences, thoughts, and feelings, often used for reflection or memory keeping.

Data Collection

is the process of gathering and measuring information on variables of interest, in a systematic fashion that enables one to answer stated research questions, test hypotheses, and evaluate outcomes.