Suppose That Demand in Period 1 Was 7 Units and the Demand

question 114

Multiple Choice

Suppose that demand in period 1 was 7 units and the demand in period 2 was 9 units. Assume that the forecast for period 1 was for 5 units. If the firm uses exponential smoothing with an alpha value of .20, what should be the forecast for period 3? (Round answers to two decimal places.)

• A) 9.00
• B) 3.72
• C) 9.48
• D) 5.00
• E) 6.12

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Definitions:

Debits

Accounting entries that increase an asset or expense account, or decrease a liability or equity account, recorded on the left side of an accounting ledger.

Account Receivable

The amount customers are required to pay a company for products or services received but for which payment has not yet been made.

Total Assets

Total assets represent the sum of all assets owned by an entity, including both current and non-current assets, indicating the total resources available to the entity.

Utility Company

A utility company is an organization that provides essential services to the public, such as water, electricity, natural gas, and sewage treatment.