Question

In 2004, the board of regents for a large midwestern state hired a consultant to develop a series of enrollment forecast models, one for each college in the state's system. These models used historical data and exponential smoothing to forecast the following year's enrollments. Based on the model, which included a smoothing constant (α) for each school, each college’s budget was set by the board. The head of the board personally selected each smoothing constant, based on what she called her “gut reactions and political acumen."

What do you think the advantages and disadvantages of this system are? Base your discussion from the stand point of a small college and then also from the view of the largest college in the system.

Answer 1