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:

Interest

The charge for the privilege of borrowing money, typically expressed as an annual percentage rate.

Withdrawals

Money or resources taken out from a system, economy, or savings for various purposes, reducing the total available amount.

Future Value

The future worth of a current asset on a certain date, calculated by presuming a specific growth rate over a period.

Initial Deposit

The first amount of money placed in an account or investment, often setting the foundation for future financial growth.