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

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