Exhibit 18

question 75

Multiple Choice

Exhibit 18.2.The following table includes the information about a monthly time series. Refer to Exhibit 18.2.When the exponential smoothing method with α = 0.1 is applied,what is the mean square error (MSE) ?

• A)20.796
• B)31.2336
• C)12.6736
• D)10.41

---

Definitions:

Future Cash Flows

Estimates of the amount of money expected to be received or paid out over future periods.

Asset

Resources owned or controlled by a business, expected to provide future economic benefits.

Double-Declining-Balance

A method of accelerated depreciation that doubles the normal depreciation rate, allowing more depreciation in the earlier years of an asset’s life.

Depreciation Expense

The portion of an asset's cost allocated over its useful life to account for its decline in value over time.