The Wilson Company Is Interested in Forecasting Demand for Its

question 55

Multiple Choice

The Wilson Company is interested in forecasting demand for its XG-667 product for quarter 13 based on 12 quarters of data.The following shows the data and the double exponential smoothing model results for periods 1-12 using alpha = 0.20 and beta = 0.40. Based on this information,which of the following statements is true?

• A)If beta is changed to 0.20 and alpha remains at 0.20,the MAD for periods 2-12 is reduced.
• B)If beta is changed to 0.20 and alpha remains at 0.20,the forecast for period 13 is slightly reduced.
• C)The forecast bias for periods 2-12 is approximately 6.18.
• D)All of the above are true.

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Definitions:

Interdepartmental Integration

The coordination and collaboration between different departments within an organization to achieve common goals.

Maslow's Theory

A psychological theory proposing a hierarchy of human needs, from basic physiological needs to safety, love and belonging, esteem, and finally self-actualization, influencing human behavior.

Herzberg's Theory

A motivation theory which suggests that there are certain factors that cause job satisfaction while a separate set of factors cause dissatisfaction, famously divided into 'hygiene' and 'motivator' factors.

Higher-Order Needs

These are advanced human needs as outlined in Maslow's hierarchy, including esteem and self-actualization needs, which are fulfilled after basic physical and security needs.