The goal of price discrimination is to increase by charging more to those who have demand.

The goal of price discrimination is to increase supply by charging more to those who have higher demands.

Explanation:

Price discrimination is a pricing strategy in which same or similar goods or products are sold at different prices at different markets by the same provider. In this strategy, the prices are changed to a higher level according to the level of demand by the customer or due to the willingness of customer who is ready to pay for that product. So the goal of price discrimination is to increase the supply by charging more to those who have higher demands.

a) 88.16%

b) 88.54%

Explanation:

a. Prepare a forecast for September.

Smoothing constant (α) = 0.1

Forecast for August (Ft) = 88%

Actual usage for August (At) = 89.6%

Forecast for September (Ft+1) =?

Ft+1= Ft+ α (At– Ft)= 88% + 0.1 (89.6 – 88)%

= 88% + 0.16%

= 88.16% is the forecasted usage for the month September.

b. Assuming actual September usage of 92 percent, prepare a forecast for October usage.

Smoothing constant (α) = 0.1

Forecast for September (Ft) = 88.16%

Actual usage for September (At) = 92%

Forecast for October (Ft+1) =?

Ft+1= Ft+ α (At– Ft)= 88.16% + 0.1 (92 – 88.16)%

= 88.16% + 0.384%

= 88.54% is the forecasted usage for the month of October.