Given a Prior Forecast Demand Value of 1,100, a Related

question 23

Multiple Choice

Given a prior forecast demand value of 1,100, a related actual demand value of 1,000, and a smoothing constant alpha of 0.3, what is the exponential smoothing forecast value?

• A) 1,000
• B) 1,030
• C) 1,070
• D) 1,130
• E) 970

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Definitions:

Straight-Line

A method of calculating depreciation or amortization that allocates an equal portion of an asset's cost to each period of its useful life.

Units-of-Activity

A depreciation method that allocates expense based on the actual usage or production levels of an asset.

Double-Declining-Balance Method

A depreciation technique that accelerates the rate at which an asset loses value, doubling the rate of the straight-line depreciation method.

Straight-Line Method

A depreciation technique that allocates an equal amount of depreciation to each year of the asset's useful life.