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:

Robbery

Robbery is the act of taking property unlawfully from a person or place by force or threat of force.

Burglary

The unlawful entry into a building or other premises with the intent to commit theft or any other felony.

Fourth Amendment Protections

Constitutional safeguards that protect individuals against unreasonable searches and seizures by the government.

Search Warrant

A court order that authorizes law enforcement agents to search for or seize items specifically described in the warrant.