Employing the error learning model to forecast sales,a firm where sales last period were expected to be $110 million,but actually sold $100 million would forecast that sales this period would be ________ if ________ is the coefficient of adjustment.

Question

Quizplus · Accepted Answer

The error learning model adjusts forecasts based on past errors. The adjustment is calculated as the coefficient of adjustment multiplied by the error. Here, the error is $10 million ($110 million expected - $100 million actual). With a coefficient of 0.5, the adjustment is $5 million, so the new forecast is $105 million ($100 million + $5 million).

Employing the Error Learning Model to Forecast Sales,a Firm Where