THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 88

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.

-Calculate the forecast value for the year 1905,if the real home price index for that year is 98.056.

• A)100.31
• B)98.51
• C)98.06
• D)cannot be determined

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Definitions:

Cash Receipts

The total amount of cash collected by a business during a given period, including all sources of income.

Budgeted Income Statement

A financial statement that forecasts the revenue, expenses, and net income for a future period, based on management's expectations.

Managerial Accounting

Accounting practices aimed at aiding managers in planning, directing, and controlling operational activities through financial data analysis.

Budget Period

The specific timeframe for which a budget is prepared, usually a fiscal year or a specific project duration.