Suppose That Sally's Company Uses Exponential Smoothing to Make Forecasts

question 25

Multiple Choice

Suppose that Sally's company uses exponential smoothing to make forecasts. Further suppose that last period's demand forecast was for 20,000 units and last period's actual demand was 21,000 units. Sally's company uses a smoothing constant (?) equal to 40%. What should be the forecast for this period?

• A) 20,000
• B) 21,000
• C) 20,600
• D) 20,400
• E) 19,600

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Definitions:

Business Income

Revenue received from the sale of goods or services related to the day-to-day operations of a business.

Immigration

The action of moving to a foreign country to live permanently.

Pre-migration

The period before migration that involves preparation and decision-making processes by potential migrants.

Brain Drain

The migration of skilled professionals from one country to another, often for better career opportunities or living conditions.