Given an Actual Demand of 61, Forecast of 58, and An \alpha

question 13

Multiple Choice

Given an actual demand of 61, forecast of 58, and an $\alpha$ of .3, what would the forecast for the next period be using simple exponential smoothing?

• A)57.1
• B)58.9
• C)61.0
• D)65.5

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Definitions:

Inventory Turnover Ratio

A measure of how quickly a company sells its inventory in a given period, calculated by dividing the cost of goods sold by the average inventory.

Liquidity Ratio

A financial metric indicating how quickly a company can convert assets into cash to meet short-term obligations.

Return On Assets Ratio

A financial metric that measures the profitability of a company relative to its total assets, indicating how efficiently a company uses its assets to generate profits.

Receivables Turnover Ratio

A financial metric used to measure how efficiently a company collects cash from its credit sales by dividing net credit sales by average accounts receivable.