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Question: The Hughes Supply Company uses an inventory management method to determine the monthly demands for various products. The demand values for the last 12months of each product have been recorded and are available for future forecast-ing. The demand values for the 12 months of 2006 for one electrical fixture are presented in Table below. Use exponential smoothing with a smoothing constant of .5 and an initial value of 205 to forecast the demand for January 2007.
Month DemandJan-06 205Feb-06 251Mar-06 304Apr-06 284May-06 352Jun-06 300Jul-06 241Aug-06 284Sep-06 312Oct-06 289Nov-06 385Dec-06 256
Recalculate the confidence interval. Using the results, describe the effect of an outlier or extreme value on the confidence interval.
Historically, it is known that the score has a Normal distribution and a standard deviation of 180. Set up the null hypothesis and the alternative hypothesis. Calculate the test statistic and find the p-value.
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