A company wants to forecast demand using the weighted moving

A company wants to forecast demand using the weighted moving

A company wants to forecast demand using the weighted moving average. If the company uses two prior yearly sales values (i.e., year 2012 = 110 and year 2013 = 130), and we want to weight year 2012 at 10 percent and year 2013 at 90 percent, which of the following is the weighted moving average forecast for year 2014? A. 120 B. 128 C. 133 D. 138 E. 142 If a vendor has correctly used marginal analysis to select its stock levels for the day (as in the newsperson problem in the text), and if the profit resulting from the last unit being sold (C_u) is $120 and the loss resulting from that unit if it is not sold (C_o) is $360, which of the following is the probability of the last unit not being sold? A) 0.90 B) 0.85 C) 0.75 D) 0.25 E) None of these

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