A Time Series Is Shown Below

question 48

Multiple Choice

A time series is shown below. Perform single exponential smoothing for this data set using α = 0.2 What is the value of the forecast for period 6?

• A) 40
• B) 36
• C) 31.5
• D) 33.2

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Definitions:

Worst-Case Scenario

The most severe or unfavorable outcome that may happen in a given situation, often used in planning and risk management.

Soft Rationing

An internal policy mechanism by which a company limits the amount of funding allocated to new or existing projects, without a shortage of available funds.

NPV Project

A project evaluated using the Net Present Value method, which calculates the present value of all cash flows associated with the project, minus the initial investment.

Straight-Line

A method of calculating depreciation of an asset which assumes the asset will lose an equal amount of value each year over its useful life.