A Company Wants to Generate a Forecast for Unit Demand

question 88

Multiple Choice

A company wants to generate a forecast for unit demand for year 2009 using exponential smoothing.The actual demand in year 2008 was 120.The forecast demand in year 2008 was 110.Using this data and a smoothing constant alpha of 0.1,which of the following is the resulting year 2009 forecast value?

• A)100
• B)110
• C)111
• D)114
• E)120

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Definitions:

Intangible Benefits

Non-quantifiable advantages provided by goods or services, such as brand reputation or employee satisfaction.

Discount Rate

The rate used within discounted cash flow assessments to ascertain the present-day value of anticipated cash flows.

Net Present Value

A calculation that determines the value of a series of future cash flows in today's dollars, taking into account the time value of money.

Automated Equipment

Equipment that operates with minimal human intervention, using technology to perform tasks that would otherwise require manual effort.