Assume That the Forecast for the Last Period Is FIT_t

question 30

Multiple Choice

Assume that the forecast for the last period is FIT_t = 200 units, and recent experience suggests a likely sales increase of 10 units each period. Actual sales for the last period reached 230 units. Assume a smoothing coefficient of a = 0.20 and a trend smoothing coefficient of β = 0.10. Demand in period t + 1 turned out to be 220. What is the adjusted forecast for period t + 2 (choose the closest answer) ?

• A)227.3
• B)215.9
• C)217.3
• D)221.3

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Definitions:

Present Tense

The form of verbs used to describe actions or conditions that are currently happening or general truths.

Confrontation

A direct encounter or challenge between parties where differences are openly discussed or faced, often seen as a means to resolve disagreements.

Confusion

A state of being bewildered or unclear in one’s mind about something.

Avoidance

A behavior or strategy aimed at keeping away from certain situations or stimuli that are perceived as harmful or unpleasant.