A Manager Is Using Exponential Smoothing to Predict Merchandise Returns

question 34

Essay

A manager is using exponential smoothing to predict merchandise returns at a suburban branch of a department store chain. Given a previous forecast of 140 items, an actual number of returns of 148 items, and a smoothing constant equal to .15, what is the forecast for the next period?

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Definitions:

Classical Conditioning

A learning strategy where two stimuli are recurrently associated; initially, the second stimulus elicits a response, but eventually, the first stimulus elicits the response by itself.

Positive Words

Words that convey a positive tone, often associated with optimism, encouragement, or praise.

Negative Words

Words that convey a negative connotation or describe something undesirable or unfavorable.

Drug Tolerance

A state resulting from repeated drug exposure where an individual becomes less responsive to a drug over time, necessitating larger doses to achieve the same effect.