It Is Now near the End of May and You

question 30

Multiple Choice

It is now near the end of May and you must prepare a forecast for June for a certain product. The forecast for May was 900 units. The actual demand for May was 1,000 units. You are using the exponential smoothing method with α = 0.20. The forecast for June is:

• A) fewer than 925 units.
• B) greater than or equal to 925 units but fewer than 950 units.
• C) greater than or equal to 950 units but fewer than 1,000 units.
• D) greater than or equal to 1,000 units.

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Definitions:

Independent Variables

Variables in a statistical model that are presumed to influence or cause changes in another variable, without being affected by it.

Increase

Increase refers to the action of becoming larger or greater in size, number, value, or amount.

Standard Error

A statistical measure that describes the accuracy with which a sample distribution represents a population, specifically the standard deviation of the sampling distribution of a statistic.

Independent Variables

Variables in an experiment or model that are manipulated or classified by the researcher to observe their effect on the dependent variable(s).