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Exhibit 8-2 . The past demand data shown below can be regarded as having a horiz

ID: 3178604 • Letter: E

Question

Exhibit 8-2. The past demand data shown below can be regarded as having a horizontal pattern.

Month

Demand

January

40

February

45

March

50

April

Refer to Exhibit 8-2. What is the forecast for March found by the exponential smoothing method with a smoothing constant of 0.3?

42.8

40

41.5

39.5

Refer to Exhibit 8-2. What is the absolute percentage error of the forecast for March found by the exponential smoothing method with a smoothing constant of 0.3?

2.5%

17%

18%

-19%

Month

Demand

January

40

February

45

March

50

April

37

Explanation / Answer

1) 41.5 option C

2) 17% option B

Month Demand(A) forecast(F) |A-F|/A January 40 February 45 40 March 50 41.5 0.17 April 37 44.05
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