The Forecast Value for July Was 210 and the Actual

question 1

Multiple Choice

The forecast value for July was 210 and the actual value turned out to be 195.The researcher is using exponential smoothing and determines that the forecast value for August is 206.25.Then he is using α = ______.

• A)0.35
• B)0.32
• C)0.30
• D)0.25
• E)0.22

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Definitions:

Stockholders' Equity

The residual interest in the assets of an entity that remains after deducting its liabilities, representing the ownership interest in a company.

Depreciation

Depreciation is the systematic allocation of the cost of a tangible asset over its useful life, reflecting wear and tear or obsolescence.

Retained Earnings

The portion of a company's profit that is held back and not distributed to shareholders, used for reinvestment or debt payment.

Dividend

A distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.