The Dean of a School of Business Is Forecasting Total

question 98

Multiple Choice

The dean of a school of business is forecasting total student enrollment for this year's summer session classes based on the following historical data: $$\begin{array} { l l } \text { Year } & \text { Enrollment } \\\hline \text { Four years ago } & 2000 \\\text { Three years ago } & 2200 \\\text { Two years ago } & 2800 \\\text { Last year } & 3000\end{array}$$ What is this year's forecast using exponential smoothing with alpha = .4, if last year's smoothed forecast was 2,600?

• A) 2,600
• B) 2,760
• C) 2,800
• D) 3,840
• E) 3,000

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Definitions:

Cost of Underselling

The missed revenue or profit when a product is sold for less than its potential market value, often resulting from inaccurate pricing strategies or market undervaluation.

Optimal Level

The most efficient, beneficial, or functional level of performance or operation within a particular context.

Product Availability

The extent to which a product can be purchased at any given time from retailers or suppliers.

Product Availability

The degree to which a product is in stock and available for purchase by consumers at any given time.