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A New Car Dealer Has Been Using Exponential Smoothing with an Alpha

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Essay

A new car dealer has been using exponential smoothing with an alpha of .2 to forecast weekly new car sales.Given the data below, would a naive forecast have provided greater accuracy? Explain.Assume an initial exponential forecast of 60 units in period 2 .


Definitions:

Effective Leadership

The ability of a person to inspire and motivate others towards the achievement of goals, marked by strong communication, decisiveness, and strategic thinking.

Fiedler

Refers to Fiedler's contingency theory, which posits that leadership effectiveness is contingent upon the leader's style of interaction with group members and the degree of control the leader has over the situation.

Hersey-Blanchard

A situational leadership model developed by Paul Hersey and Kenneth Blanchard that suggests the best leadership style is contingent on the level of followers' maturity.

Contingency Models of Leadership

Contingency models of leadership propose that the effectiveness of leadership is contingent upon the interplay between a leader's style of leadership and the demands of the situation.

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