w S A check-processing center uses exponential smoothing to forecast the number
ID: 343863 • Letter: W
Question
w S A check-processing center uses exponential smoothing to forecast the number of incoming checks each month. The number of checks received in June was 40 million, while the forecast was 43 million. A smoothing constant of 0.15 is used a) Using exponential smoothing and given o b lf the check-process ng center received 44 million checks in the month of July, then using exponential smoothing and given , the f ecast for the month of August- checks received (round your response to one decimal place) the fo ecast for the month o July- million checks receved ound your response to one de ir alpl 2 milion 4c) Exponential smoothing may not be an appropriate method to use for the check-processing center because: A. the check-processing center should observe a cyclical trend in its processing requirements 0 B, the check-processing center's forecast is very hard to make as its processing requirements should have a very high variability ° C. the check-processing center should observe an increasing trend in its processing requirements. D. 71 the check-processing center should observe seasonality in its processing requirements Click to select your answer(s). Show All QM 352 Crade Projec-xlsk . weingarten2.swf 4,Explanation / Answer
A.
Exponential Forecast for the month of July = (40-43)*.15 + 43 = 42.55 or 42.6 Million checks received
B.
Forecast for the month of August = (44-42.6)*.15 + 42.6 = 42.81 or 42.8 million checks received
C.
Correct Answer:
A
Explanation:
There can be a cyclical trend in the business that will also bring cyclical impact upon the number of checks received by the check processing center.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.