Exhibit 11.2 The Following Questions Use the Data Below

question 24

Multiple Choice

Exhibit 11.2
The following questions use the data below.
Honest Al's Used Cars wants to predict how many cars are sold each month. He has collected data for 12 months. He needs your help in analyzing this data using weighted moving averages.
-Refer to Exhibit 11.2. What is the 2-month weighted moving average forecast for month 3 using the weight in the spreadsheet? Associate weight w₁ with sales in time period 2 and w₂ with sales in time period 1.

• A) 72.44
• B) 75.00
• C) 76.59
• D) 77.56

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Definitions:

Demand Function

An equation that illustrates the quantity of an item that will be purchased at various prices, often factoring in influences like consumer income and tastes.

Price Elasticity

Price elasticity measures the responsiveness of demand or supply of a good to changes in its price.

Absolute Value

The non-negative value of a number without regard to its sign.

Demand Function

A mathematical equation that specifies the quantity of a good or service demanded at various price levels, holding all other factors constant.