Heidi Favors Using a Two Period Moving Average but Tim

question 42

Multiple Choice

Heidi favors using a two period moving average but Tim is "an exponential-smoothing man." Tim's demand forecast for May was identical to Heidi's.What value of alpha would Tim need to use in order for his June forecast to be identical to Heidi's if each sticks with their preferred technique?

• A) .085
• B) .196
• C) .237
• D) .348

---

Definitions:

Private Good

A product or service that is excludable and rivalrous, meaning its consumption by one individual prevents its use by another.

Unleaded Gasoline

A type of gasoline that does not contain lead compounds and is used to fuel the majority of motor vehicles to reduce air pollution.

Artificially Scarce

Artificial scarcity refers to situations where availability of products or resources is restricted due to factors other than natural scarcity, often manipulated through regulatory or monopolistic practices.

Self-Protection

Actions taken by individuals or entities to mitigate or avoid risks to themselves.