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

---

Definitions:

Credit Needs

The requirement for borrowing funds to finance purchases, investments, or to bridge gaps in cash flow.

Security Needs

The requirement to protect a nation, organization, or individual from various threats, including cyber attacks, terrorism, and theft.

Required Reserve Ratio

The ratio of reserves to deposits that banks are obligated by regulation to hold.

Excess Reserves

Bank reserves exceeding required reserves