Below Are the First Two Values of a Time Series

question 18

Multiple Choice

Below are the first two values of a time series and the first two values of the exponential smoothing forecast. $$\begin{array}{l}\begin{array} { l l l } &&\text { Exp onential Smoothing }\\\text { Time Period } ( t ) & \text { Time Series Value } \left( Y _ { \mathbf { t } } \right) & \text { Forecast } \left( F _ { \mathbf { t } } \right) \\1 & 18 & 18 \\2 & 22 & 18\end{array}\end{array}$$ If the smoothing constant equals .3, then the exponential smoothing forecast for time period 3 is _____.

• A) 18
• B) 19.2
• C) 20
• D) 40

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Definitions:

Net Operating Income

A company's revenue minus its operational direct and indirect costs, excluding taxes and interest.

Net Operating Income

Earnings from a company's regular activities before taxes and interest, used to gauge the company's operational efficiency.

Absorption Costing

Absorption costing is an accounting method that includes both variable and fixed manufacturing costs in the cost of a product.

Net Operating Income

A financial metric that calculates the profit generated from a company's operations, excluding taxes and interest.