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:

Homo Erectus

An extinct species of early human that lived throughout most of the Pleistocene geological epoch, known for its ability to walk upright.

Homo Habilis

An extinct species of early human that lived approximately 2.4 to 1.4 million years ago, known for using stone tools.

Four-chambered Heart

A type of heart structure found in mammals and birds, consisting of two atria and two ventricles, allowing for efficient separation of oxygenated and deoxygenated blood.

Hemoglobin

Iron-containing respiratory pigment occurring in vertebrate red blood cells and in the blood plasma of some invertebrates.