A Major Biotechnology Company Has Developed a New Drug for Arthritis

question 58

Essay

A major biotechnology company has developed a new drug for arthritis victims using gene-splicing technology. It has been on the market for five months and has experienced the following sales (in thousands of dollars):
$\begin{array}{|l|c|}\hline \text { Month } & \text { Sales } \\\hline \text { January } & 26 \\\hline \text { February } & 32 \\\hline \text { March } & 34 \\\hline \text { April } & 34 \\\hline \text { May } & 36 \\\hline\end{array}$ a. What is the exponential smoothing forecast for May assuming that January sales is also the initial forecast, and the alpha value is 0.5?
b. What is the exponential smoothing forecast for May assuming that January sales is also the initial forecast, and the alpha value is 0.8?
c. What is the mean absolute deviation (MAD) for exponentially smoothed forecasts for the months March to May assuming that January sales is also the initial forecast, and the alpha value is 0.5?
d. What is the MAD for exponentially smoothed forecasts for the months March to May assuming that January sales is also the initial forecast, and the alpha value is 0.8?
e. What is the tracking signal for exponentially smoothed forecasts for the months March to May assuming that January sales is also the initial forecast, and the alpha value is 0.5?
f. What is the tracking signal for exponentially smoothed forecasts for the months March to May assuming that January sales value is 0.8?

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Definitions:

Beneficial or Adverse

This term refers to outcomes or effects of actions or policies that can either be positive (beneficial) and contribute to the intended goals, or negative (adverse), and detract from those goals.

Different Levels

Distinct stages or degrees of hierarchy, progression, or intensity within a structure or system.

Strong Identification

A psychological state in which an individual feels a profound connection or sense of belonging with a group or organization.

Referent Power

A form of influence that stems from being admired and respected, often due to one's personality, integrity, or charisma.