The Zocor Company Is Interested in Forecasting Period 13 Sales

question 32

Multiple Choice

The Zocor Company is interested in forecasting period 13 sales for a product.It has 12 months of historical data.The following shows the data and the forecasted values for periods 1-12 using a single exponential smoothing model with a smoothing constant value equal to 0.20 What is the forecast bias value for the model over periods 2-12?

• A)About 8.7
• B)Approximately -11.9
• C)About ± 8.9
• D)None of the above

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Definitions:

Demand for Bread

The willingness and capability of consumers to purchase bread at various price levels, influenced by factors like taste preferences and income.

Demand for Flour

The desire or consumer's willingness to purchase flour at various prices, influenced by factors like baking trends, population growth, and economic conditions.

Substitution in Production

The process of replacing one input or resource with another in the production process to save costs or increase efficiency.

Price of Steel

The cost per unit of steel, which can fluctuate based on market demand, supply conditions, and raw material prices.