Simple Exponential Smoothing Is Being Used to Forecast Demand

question 35

Multiple Choice

Simple exponential smoothing is being used to forecast demand. The previous forecast of 66 turned out to be four units less than actual demand. The next forecast is 66.6, implying a smoothing constant, alpha, equal to:

• A) .01.
• B) .10.
• C) .15.
• D) .20.
• E) .60.

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Definitions:

Market Segment

A subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs.

Strategic Group

A cluster of firms within an industry that follow a similar strategy or business model, competing on similar bases.

Cash Cow

A business unit, product line, or investment that generates consistently high profit margins and requires little investment to maintain.

Strategic Marketing Planning Process

A systematic approach to developing marketing strategies and plans that support the overall business goals and objectives.