Use a Single Exponential Smoothing (SES) Model with α =

question 36

Multiple Choice

Use a single exponential smoothing (SES) model with α = .8 to forecast for January 2008 for the following data.Assuming that the forecast for December 2007 was 1.18 %, this value is ________________________ .

• A)1.50
• B)1.18
• C)1.75
• D)1.90
• E)2.20

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Definitions:

General Annuity

An annuity in which the payment interval does not equal the compounding interval.

Annuity Due

An annuity in which the periodic payments occur at the beginning of each payment interval.

Compounded Monthly

Definition: The process where interest is calculated and added to the principal amount of the deposit or loan every month.

Lump Sum Deposit

A single and typically large payment made at once rather than being divided into multiple payments over time.