Based on the Information Shown Below in Table 5, Develop

question 53

Multiple Choice

Based on the information shown below in Table 5, develop a forecast for June using both the two-period moving average model and the exponential smoothing model with ? = 0.10. For the exponential smoothing model, assume the forecast for February is 800. Answer questions
Table 5
$\begin{array}{|l|c|}\hline \text { Month } & \text { Actual Demand } \\\hline \text { February } & 850 \\\hline \text { March } & 900 \\\hline \text { April } & 975 \\\hline \text { May } & 950 \\\hline\end{array}$
-The exponential smoothing model forecast for March is:

• A) less than or equal to 840.
• B) more than 840 but less than or equal to 850.
• C) more than 850 but less than or equal to 860.
• D) more than 870 but less than or equal to 880.

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Definitions:

Production Function

An economic model that describes the relationship between inputs used in production and the output of those goods or services.

Supply Function

A mathematical model that illustrates the relationship between the supply of a good or service and its price, holding other factors constant.

Production Function

An equation that describes the relationship between inputs and the maximum output that can be produced with those inputs.

Competitive Markets

Market structures characterized by a large number of buyers and sellers, where no single participant has the power to significantly influence prices.