Simple Exponential Smoothing Is Being Used to Forecast Demand

question 156

Multiple Choice

Simple exponential smoothing is being used to forecast demand.The previous forecast of 66 turned out to be 3 units less than actual demand.The next forecast is 66.6,implying a smoothing constant,alpha,equal to:

• A)01
• B)10
• C)15
• D)20
• E)60

---

Definitions:

Bonds Payable

Long-term liabilities representing a company's commitment to pay a specified amount of money at certain future dates for funds borrowed.

Interest Expense

The expense an entity faces for using borrowed capital, recorded as a non-operating cost on the income statement.

Income Statement

A financial statement that shows a company's revenues, expenses, and profits over a specific period, reflecting its financial performance.

Effective Interest Rate

The actual return on an investment or the actual cost of a loan, taking into account the effect of compounding interest.