Wayne Rexburg,a Marketing Analyst for Bosco Incorporated,uses Exponential Smoothing Techniques

question 39

Multiple Choice

Wayne Rexburg,a marketing analyst for Bosco Incorporated,uses exponential smoothing techniques to forecast sales.If Wayne decides to increase the smoothing constant from 0.4 to 0.8,he is:

• A)Decreasing the influence of sales in recent periods in the forecast,while increasing the influence of sales in earlier periods in the forecast.
• B)Doubling the influence of forecasted sales in time t.
• C)Increasing the influence of sales in recent periods in the forecast,while decreasing the influence of sales in earlier periods.
• D)Damaging the integrity of the forecast because the smoothing constant should remain the same;its value is not arbitrary.
• E)Enhancing the validity of the forecast because the influence of sales in recent periods - the most relevant periods - is increased while the influence of sales in past periods is decreased.

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Definitions:

Security

Collateral or asset pledged to guarantee the repayment of a loan or fulfillment of a contractual obligation.

Consideration

An element of a valid contract; the price one is willing to pay for the promise set out in the offer.

Guarantee

A formal assurance or promise, often related to the quality or durability of a product, or the fulfillment of a contract.

Guaranteed

Promised with certainty or underwritten with a promise of payment or performance.