A Company Wants to Product a Weighted Moving Average Forecast

question 48

Multiple Choice

A company wants to product a weighted moving average forecast for April with the weights 0.40,0.35,and 0.25 assigned to March,February,and January,respectively.If the company had demands of 5,000 in January,4,750 in February,and 5,200 in March,then April's forecast is

• A)4983.33.
• B)4992.50.
• C)4962.50.
• D)5000.00.

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Definitions:

Call Option

A financial contract that gives the buyer the right, but not the obligation, to buy a stock, bond, commodity, or other asset at a specified price within a specific time period.

Dividend

A distribution of earnings given by a company to its stockholders, typically out of its profits.

Black-Scholes OPM

A model used to calculate the theoretical price of European put and call options, based on factors including the stock's current price, its volatility, the option's strike price, and the risk-free interest rate.

National Paper

Debt instruments issued by a government to finance its national activities and projects.