The Owner of the Crossed Connections Electronic Appliance Repair Shop

Multiple Choice

The owner of the Crossed Connections electronic appliance repair shop is enjoying increasing demand for her services. Total weekly demand, measured in standard labor hours, has been increasing. The owner uses trend- adjusted exponential smoothing to make forecasts for the following week so that she can plan work schedules and staffing levels. She has the following data to prepare her forecast:
A_{t- 1} = 100 hours
α = 0.30
T_{t- 1} = 10 hours
β = 0.10
D_t = 120 hours
Assuming she is now at the end of week t, what is the forecast for week t + 1?

A) less than or equal to 114 hours
B) greater than 114 hours but less than or equal to 118 hours
C) greater than 118 hours but less than or equal to 122 hours
D) greater than 122 hours