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:

Logos

A concept from classical rhetoric that refers to logical appeal or the rational argument in persuasive communication.

Master Narrative

A covering story or fantasy that explains a group more readily or attracts more believers than other fantasies available to group members.

Group Members

Group members refer to individuals who belong to a specific collective or team, each potentially contributing diverse perspectives and skills towards achieving common goals.

Dramatistic Pentad

Kenneth Burke’s core questions of act, scene, agent, agency, and purpose for analysis of motives.