Exhibit 11.3 The Following Questions Use the Data Below

question 43

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 formula should be entered in cell C4 to compute the exponential smoothing forecast for month 2?

• A) =C3-$F$3*(B3-C3)
• B) =C3+$F$3*(C3-B3)
• C) =B3+$F$3*(B3-C3)
• D) =C3+$F$3*(B3-C3)

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Definitions:

Zero Slope

Characteristic of a straight line that is perfectly horizontal, indicating no change in the dependent variable regardless of changes in the independent variable.

Panels

Groups of selected individuals or experts brought together to discuss, investigate, or study a specific subject or area of interest.

Average Costs

The total costs of production divided by the quantity of output produced, representing the cost per unit of output.

Output

The quantity of goods or services produced by a firm or industry within a certain period.