A Management Analyst Is Using Exponential Smoothing to Predict Merchandise

question 84

Essay

A management analyst is using exponential smoothing to predict merchandise returns at an upscale branch of a department store chain. Given an actual number of returns of 154 items in the most recent period completed, a forecast of 172 items for that period, and a smoothing constant of 0.3, what is the forecast for the next period? How would the forecast be changed if the smoothing constant were 0.6? Explain the difference in terms of alpha and responsiveness.

Recognize the effect of the availability heuristic on risk assessment and decision-making.

Understand how behavioral biases influence perceptions of gains and losses.

Understand and describe the stages of group development.

Recognize the relationship between group size and various group dynamics such as cohesiveness, performance, and member participation.

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Definitions:

Introverted Feeling Types

Personality types characterized by deep emotional experiences, guided by internal values, and often kept private.

Extraverted Thinking Type

A personality disposition characterized by outwardly directed logical reasoning and decision-making.

Mental Attitudes

The cognitive and emotional orientations or views that an individual holds towards various aspects of life.

Middle Age

A period in an adult's life, typically considered to range from around 45 to 65 years old, marked by transitions in physical, emotional, and social aspects.