The Forecast Value for September Was 21 $\alpha$ = 030, the Forecast Value for October Would Be ______

question 50

Multiple Choice

The forecast value for September was 21.1 and the actual value turned out to be 18.Using exponential smoothing with $\alpha$ = 0.30, the forecast value for October would be ______.

• A)18.09
• B)18.93
• C)20.17
• D)21.00
• E)17.07

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Definitions:

Discount Rate

A rate used to convert future cash flows into their present value, reflecting the opportunity cost of capital or the interest rate.

Perpetuity

An annuity that pays a constant amount to an investor at regular periods forever.

Discount Rate

The rate of interest applied in the evaluation of discounted cash flows to calculate the current value of future cash movements.

Perpetuity

A financial instrument that pays a fixed amount of income indefinitely, with no end date.