The Wilson Company Is Interested in Forecasting Demand for Its

question 114

Multiple Choice

The Wilson Company is interested in forecasting demand for its XG-667 product for quarter 13 based on 12 quarters of data.The following shows the data and the double exponential smoothing model results for periods 1-12 using alpha = 0.20 and beta = 0.40 Based on this information,what is the difference between the forecast for period 13 using smoothing constants of alpha = 0.20 and beta = 0.40 and smoothing constants of alpha = 0.10 and beta = 0.30? (Assume that the starting values for period 0 are C = 745 and T = 32. )

• A)About 108 units
• B)Approximately 9 units
• C)Just under 32 units
• D)About 85 units

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Definitions:

Poverty

The state or condition in which a person or community lacks the financial resources and essentials for a minimum standard of living.

Production Possibilities Frontier

A curve that shows the maximum possible output combinations of two goods or services that an economy can achieve when all its resources are used efficiently.

Great Depression

A severe worldwide economic downturn that took place during the 1930s, characterized by high unemployment, deflation, and a collapse in demand and investment.

Opportunity Cost

The cost of foregone alternatives when one option is chosen over another, representing the benefits that could have been gained by taking the alternate path.