THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 41

Multiple Choice

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
The table below is the data set of the Shiller Real Home Price Index for the years 1894-1904.
Use a smoothing constant of α = 0.8 to determine the forecasts using simple exponential smoothing.

-The year ________ has the forecast value 104.95.

• A)1885
• B)1899
• C)1895
• D)1991

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Definitions:

Net Proceeds

The amount of money received from a sale after subtracting all related expenses and costs.

Fair Value

Amount for which a security could be sold in a normal market.

Trading Securities

Securities bought and held primarily for sale in the near term to generate income on short-term price differences.

Unrealized Gain

The increase in value of an asset that has not been sold yet, therefore the gain is not reflected in the income statement.