TABLE 16-13 Given Below Is the Monthly Time-Series Data for U.S. Retail

question 156

Short Answer

TABLE 16-13
Given below is the monthly time-series data for U.S. retail sales of building materials over a specific year.

The results of the linear trend, quadratic trend, exponential trend, first-order autoregressive, second-order autoregressive and third-order autoregressive model are presented below in which the coded month for the first month is 0:




-Referring to Table 16-13, what is the exponentially smoothed forecast for the 13ᵗʰ month using a smoothing coefficient of W = 0.25 if the exponentially smooth value for the 10ᵗʰ and 11ᵗʰ month are 9,477.7776 and 9,411.8332, respectively?

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Definitions:

Carrying Value

The net book value of an asset or liability on a company's balance sheet, calculated as the original cost minus any depreciation, amortization, or impairment costs.

Bond Discount

is the difference between the face value of a bond and its selling price when the bond is sold for less than its face value.

Straight Line Amortization

A method for calculating the periodic reduction in the carrying amount of an intangible asset, spreading the cost evenly over its useful life.

Par Value Bonds

Bonds issued with a fixed face value that is to be repaid at maturity, often different from their market value.