A Concert Promoter Is Forecasting This Year's Attendance for One

question 13

Multiple Choice

A concert promoter is forecasting this year's attendance for one of his concerts based on the following historical data: $$\begin{array} { | l | c | } \hline { \text { Year } } & \text { Attendance } \\\hline \text { Four Years ago } & 10,000 \\\hline \text { Three Years ago } & 12,000 \\\hline \text { Two Years ago } & 18,000 \\\hline \text { Last Year } & 20,000 \\\hline\end{array}$$
What is this year's forecast using a two-year weighted moving average with weights of .7 and .3?

• A) 19,400
• B) 18,600
• C) 19,000
• D) 11,400
• E) 10,600

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Definitions:

Interest Payment

A payment made to a lender by a borrower in exchange for the use of borrowed money, typically calculated as a percentage of the principal.

Accumulated Depreciation

The cumulative depreciation of an asset up to a single point in its life, reflecting the asset's loss in value due to wear and tear, age, or obsolescence.

Operating Activities

The cash flows related to the core operations of a business, including revenues and expenses.

Indirect Method

The indirect method is a technique used in financial accounting to prepare the cash flow statement, where net income is adjusted for non-cash transactions and changes in working capital to find net cash from operating activities.