The Following Table Shows the Sales Data of a Particular

question 5

Multiple Choice

The following table shows the sales data of a particular model of a DVD player. If the forecast sales for May is 36.25, calculate the sales forecast for July using the simple exponential smoothing (SES) model with a smoothing constant of 0.40.
$\begin{array} { | l | l | } \hline \text { Month } & \text { Sales } \\\hline \text { Jan } & 35 \\\hline \text { Feb } & 29 \\\hline \text { Mar } & 39 \\\hline \text { Apr } & 42 \\\hline \text { May } & 51 \\\hline \text { Jun } & 56 \\\hline\end{array}$

• A) The sales forecast for July is more than 30 but less than or equal to 35.
• B) The sales forecast for July is more than 35 but less than or equal to 40.
• C) The sales forecast for July is more than 40 but less than or equal to 50.
• D) The sales forecast for July is more than 50 but less than or equal to 55.

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Definitions:

Translation Exposure

The potential for a company's financial statements in foreign currencies to be affected by fluctuations in exchange rates.

Financial Statements

are formal records of the financial activities and position of a business, individual, or other entity, typically including the balance sheet, income statement, and cash flow statement.

Functional Currency

The primary currency of the primary economic environment in which an entity operates.

Depreciation

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