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.

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Definitions:

Workplace Bad News

Unfavorable or discouraging information that needs to be communicated within a professional setting.

Deliver In Person

The act of physically handing over a document or item directly to the intended recipient, rather than using mail or electronic means.

Justify

To provide reasons or evidence in support of an argument, action, or decision.

Direct Strategy

A communication approach that involves stating the main point or objective at the beginning, often used when the message is not contentious or when clarity is paramount.