A Company Wants to Generate a Forecast for Unit Demand

question 88

Multiple Choice

A company wants to generate a forecast for unit demand for year 2009 using exponential smoothing.The actual demand in year 2008 was 120.The forecast demand in year 2008 was 110.Using this data and a smoothing constant alpha of 0.1,which of the following is the resulting year 2009 forecast value?

• A)100
• B)110
• C)111
• D)114
• E)120

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Definitions:

Coefficient

A predetermined or specific number that is positioned in front of and serves to multiply the variable in a mathematical expression.

Supply Curve

A graphical representation showing the relationship between the price of a good or service and the quantity supplied.

One-of-a-Kind

A unique item or entity, not identical to any other in its characteristics or qualities.

Relatively Inelastic

Describes a situation where the demand for a good or service changes little in response to changes in price, highlighting consumers' relative insensitivity to price fluctuations.