Exhibit 11.3 The Following Questions Use the Data Below

question 58

Multiple Choice

Exhibit 11.3
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 exponential smoothing.
-Refer to Exhibit 11.3. What is the exponential smoothing forecast for month 2?

• A) 69.75 ≤ forecast < 70.25
• B) 73.00 ≤ forecast < 73.50
• C) 74.75 ≤ forecast < 75.25
• D) 79.75 ≤ forecast < 81.25

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Definitions:

Deadweight Loss

The decline in economic productivity that happens when a good or service does not reach or cannot reach its equilibrium.

Tax

A required monetary fee or different kind of tax levied on a taxpayer by a government entity to finance government operations and a range of public expenses.

Buyers

Consumers or organizations that acquire products or services for direct use or ownership.

Sellers

Individuals or entities that offer goods or services for sale in a market.