Stock Exchange
Membership on a Stock Exchange for Five Years

question 27

Short Answer

Stock exchange
Membership on a stock exchange for five years is given below: $$\begin{array} { | c | c | } \hline \text { Year } & \text { Members } \\\hline 1996 & 520 \\1997 & 510 \\1998 & 505 \\1999 & 508 \\2000 & 512 \\\hline\end{array}$$
-Use the exponential smoothing procedure to obtain estimates of the trend (this is not the logarithm approach here).Set the smoothed value for 1996 equal to the actual and use a smoothing constant, $\alpha$ = 0.4.Compute the forecasted value for 2000.

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Definitions:

Risk Averse

describes a preference for avoiding risk, where individuals opt for the option with the least uncertainty in outcomes or potential losses.

Subjective Measure

A type of data collection or evaluation based on personal opinions, interpretations, points of view, emotions, and judgment.

Present Value

The present value is the current worth of a future sum of money or stream of cash flows given a specified rate of return.

Interest

The cost of borrowing money, typically expressed as a percentage rate over the period of the loan, or the return earned on investments.