Suppose That Jane's Company Uses Exponential Smoothing to Make Forecasts

question 31

Multiple Choice

Suppose that Jane's company uses exponential smoothing to make forecasts. Further suppose that last period's demand forecast was for 500 units and last period's actual demand was 480 units. In addition, yesterday Jane found out that this period's actual demand will be for 550 units. Jane's company uses an ? value of .20. Today, Jane's boss asked her to prepare a forecast for this period. What should that forecast be?

• A) 504
• B) 496
• C) 510
• D) 484
• E) 550

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Definitions:

Financial Statements

Reports that summarize the financial performance and position of a company, including the balance sheet, income statement, and cash flow statement, among others.

Net Income

The total profit or loss of a company after all revenues, costs, and expenses have been accounted for.

Bad Debt Expense

An estimated expense recognized by businesses for accounts receivable that are considered unlikely to be collected.