What Is the Forecast for This Year Using Trend Adjusted

question 32

Multiple Choice

What is the forecast for this year using trend adjusted (double) smoothing with alpha = .05 and beta = 0.3, if the forecast for last year was 21,000, the forecast for two years ago was 19,000, and the trend estimate for last year's forecast was 1,500?

• A)18,750
• B)19,500
• C)21,000
• D)22,650
• E)22,800

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Definitions:

Risk Assessment

The process of identifying, analyzing, and evaluating risks involved in a specific situation or for a project.

Control Procedures

Actions and policies implemented by an organization to ensure the integrity of its financial and operational processes.

Monitoring

The continuous observation, checking, and adjustment of a process or performance by systematically tracking key metrics or activities.

Reasonable Assurance

A high level of certainty provided through internal controls and procedures to prevent and detect errors or fraud in financial reporting.