Use the Data Given Below to Answer the Following Question(s)

question 14

Multiple Choice

Use the data given below to answer the following question(s) .
The worldwide sales of cars from 1981-1990 are shown in the table below.Given: α = 0.2 and γ = 0.05.(Hint: Use XLMiner) .
$\begin{array}{|c|c|}\hline \text { Year } & \begin{array}{c}\text { Units sold in } \\\text { thousands }\end{array} \\\hline 1 & 750 \\\hline 2 & 823 \\\hline 3 & 1034 \\\hline 4 & 1945 \\\hline 5 & 1556 \\\hline 6 & 1300 \\\hline 7 & 1346 \\\hline 8 & 1150 \\\hline 9 & 967 \\\hline 10 & 1200 \\\hline\end{array}$
-If the given time series has a trend and seasonality, the most appropriate forecasting model to determine the forecast of the time series is the ________ model.

• A)multiple regression
• B)Holt-Winters no trend smoothing
• C)double exponential smoothing
• D)Holt-Winters multiplicative

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Definitions:

Cash Payback Period

The length of time required for an investment to generate cash flows sufficient to recover the initial outlay.

Present Value Factors

The numerical values used to calculate the present value of future cash flows, based on a specific discount rate.

Desired Rate of Return

The minimum rate of return on an investment that an investor considers acceptable, given its risk and alternative options.

Present Value Index

A ratio used to evaluate the relative profitability of an investment or project by comparing the present value of cash inflows to the present value of cash outflows.