The Business Analyst for Video Sales, Inc What Is the Forecast for This Year Using Exponential Smoothing

question 61

Multiple Choice

The business analyst for Video Sales, Inc. wants to forecast this year's demand for DVD decoders based on the following historical data: $$\begin{array} { | l | c | } \hline{ \text { Year } } & \text { Enrollments } \\\hline \text { 5 Years ago } & 900 \\\hline \text { 4 Years ago } & 700 \\\hline \text { 3 Years ago } & 600 \\\hline \text { 2 Years ago } & 500 \\\hline \text { Last Year } & 300 \\\hline\end{array}$$
What is the forecast for this year using exponential smoothing with alpha = .4, if the forecast for two years ago was 750?

• A) 163
• B) 180
• C) 300
• D) 420
• E) 510

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Definitions:

Acquired Drives

Secondary drives that are learned through conditioning, such as desire for money or achievement, rather than primary drives like hunger or thirst.

Hull's Model

A theoretical framework in psychology developed by Clark L. Hull, which attempts to explain learning and motivation by focusing on a systematic theory of behavior.

Excitatory Potential

The likelihood that a specific event will elicit a specific response.

Drive Reduction

A theory of motivation suggesting that behaviors are motivated by the desire to reduce internal states of tension.